Bitcoin nears all-time highs — Here’s why $73K is the next key level to watch

Bitcoin is rebounding from last weeks lows and is nearing $60,000 once again.

The price of Bitcoin (BTC) saw a correction in the run-up to the record options expiry last Friday. However, nothing happened despite some expecting a massive move on the same day. The actual correction occurred before the event. On the day itself, Bitcoin’s price has bottomed out and began to rally.

The ongoing rally above $59,000 is being fueled by bullish news from Visa and PayPal as both are getting into Bitcoin and cryptocurrency payments. Put differently, the market is very much in the middle of the bull cycle and any correction is a blessing to traders and investors.

Critical support zone holds for more upside

BTC/USDT 3-day chart. Source: TradingView

As the chart above shows, the critical support area between $49,500 and $51,000 was just tested last week. Since the support held, another higher low was made, resulting in renewed upward momentum, which is playing out this wee.

The entire structure since September is massively bullish when the market broke above $12,000 and started to accelerate. The previous higher low was made at $42,000, which then became the critical support area to hold. As Bitcoin’s price didn’t even need such a heavy correction this time around, the recent low at $49,500-$51,000 can be classified as the new higher low.

Therefore, the next points of interest can be made through the Fibonacci extension, where $73,000 and $92,000 become the next points of interest if Bitcoin’s price breaks above the current all-time high at around $61,000.

The total market cap looks bullish

Total market capitalization cryptocurrency 3-day chart. Source: TradingView

The total market capitalization shows a similar support test as the $1.5 trillion levels were critical to hold.

Since the total market cap of crypto survived that correction, more upside is very likely as the all-time high regions will be tested.

If further strength is being demonstrated, the next points of interest for the total market cap can be found at $2.2 trillion, which is also confirmed by the Fibonacci extension.

Bitcoin dominance chart approaches a critical zone

BTC Dominance 3-day chart. Source: TradingView

The dominance chart of Bitcoin shows a critical breaker for more downside. If the dominance drops below 60%, an assumption can be made that a sharp drop will occur toward 50%.

That’s not unlikely to happen since the summer period is often very favorable for altcoins. 2020 saw big rallies during this period, and investors remember the summer of 2017.

History may certainly repeat once more as many altcoin charts are looking bullish for breakouts against Bitcoin. Therefore, for alt season to happen, the price of Bitcoin must be relatively stable or slowly grind upward, which is currently the case.

A possible scenario for Bitcoin

BTC 4-hour chart. Source: Tradingview

The 4-hour chart of Bitcoin shows a clear uptrend since its recent bottom at $50,000.

However, several critical support levels are being established during this rebound. Right now, the important area to hold is $56,000. As long as that region maintains support, more upside is likely for the market. This puts new all-time highs and potentially $73,000 on the table.

On the upside, the critical area to break is shown by the red box, specifically $59,000-$60,000. Until then, altcoins will probably continue to gain momentum, and even if Bitcoin makes new all-time highs, altcoins will most likely follow suit.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Bitcoin traders worry as BTC price remains pinned below $50K

The price of Bitcoin remains stuck in a downtrend after failing to close above $50,000.

The price of Bitcoin (BTC) has failed to break above the psychological $50,000 resistance going into the weekend and has dropped below the $48,000 level on March 6. 

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

Now traders are watching whether BTC/USD can break above the $50,000 level to resume the bull cycle. Conversely, a drop below the recent lows below $46,000 will likely open the door to new lower lows, which may then pose a threat to the bull run that has been in place for almost a year, at least in the short to medium term. 

Pseudonymous trader Rekt Capital pointed out similar price levels to watch. If BTC fails to hold the current levels above $46,000, the trader expects Bitcoin to bottom somewhere in the area between $38,000 and $45,000 despite Bitcoin posting higher lows in recent days. 

"BTC higher lows hold until they don't," he wrote. "Each subsequent reaction from the January HL was lesser and lesser. Could be the same now. Better to be safe than sorry by preparing for a potential breakdown from this HL."

One major factor that's likely causing the current downward pressure on price is an uptick in whales' activity. Data from CryptoQuant shows an increase in large transactions to exchanges on March 6, though miners' activity remains relatively low. 

As shown in the chart below, previous upticks in whales moving funds to exchange coincided with drops in Bitcoin price on March 3-4.  

Whales (blue) vs. Miners (orange) vs. BTC price (red). Source: CryptoQuant

Macroeconomic headwinds for Bitcoin

As Cointelegraph reported, Bitcoin is also facing downward pressure from macroeconomic headwinds. A sharp spike in 10-year U.S. Treasury yields and a pullback in tech stocks, in particular, are weighing on cryptocurrency prices as investors flee risk-on assets.

Meanwhile, the Dollar currency index, or DXY, has broken through technical resistance, hitting the highest levels since November 2020. 

BTC (blue) vs. DXY (orange). Source: Tradingview

Cointelegraph Markets analyst Michael van de Poppe points out that Bitcoin's downtrend remains intact after the latest attempt to break $50,000 failed. 

"This means that the trend is still down and overall weakness on the markets in the short term," he explained. "$50,000 is so far a no-go for Bitcoin."

However, Bitcoin, as well as gold, may see some respite soon as the DXY and Treasury yields are nearing their own technical resistance levels.  

"I believe that the yields are getting topped out relatively soon including the DXY," explained van de Poppe. "Both are in resistance areas, which means that we should be close to a top formation on these two, but also on a bottom formation for Bitcoin and gold relatively soon."

He added: 

March is often a bad month for markets and history repeats itself. So macro-wise, we're still bullish on the cycle and heating up for continuation, despite the recent interest in yields."

Bitcoin sell-off over? Strong ‘buy the dip’ signal flashes for the first time in 5 months

Bitcoin is retesting a key support level at $44K-$45K for the third time in the past week.

The price of Bitcoin (BTC) has dropped to the key $44,000-$45,000 support level on Feb. 28 for the third time in the past week.

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

The BTC/USD pair briefly dipped below $44,000 on Bitstamp before paring some of the losses, bouncing back above $45,000 at the time of writing. 

'Full rest' for SOPR, funding rates

Some analysts have pointed out an uptick in miners' selling as the reason behind the latest drop in price. 

Fortunately, the third retest of this key support level may have a silver lining for the bulls. Data analytics resource Glassnode noted that the daily Bitcoin Spent Output Profit Ratio (SOPR) has seen a "full reset."

The SOPR essentially shows whether spent outputs are in profit or loss at the time of transaction. This key metric turned negative for the first time since September 2020. In other words, investors are now moving BTC at a slight loss on average, suggesting that profit-taking has abated, according to Glassnode. 

"In total, we saw an on-chain net realized loss of $243 million yesterday," the analysts added.

"That is the lowest daily value since April 2020."
Bitcoin funding rates. Source: Bybt.com

Meanwhile, popular trader Philip Swift, the co-founder of trading suite Decentrader and creator of the Golden Ratio multiplier method, also pointed out the SOPR crash.

He considers this a potentially bullish turnaround for BTC price in combination with last week's reset of derivatives funding rates because such events have previously coincided with the start of new uptrends.  

"The SOPR has now reset (green on the chart) meaning that wallets selling are now selling at a loss," he explained, addin:

"This is a strong 'buy the dip' signal in a bull market. This alongside derivative fundings having reset is bullish."
BTC price vs. SOPR. Source: DecenTrader/Twitter @PositiveCrypto

The last time the SOPR flipped green was five months ago when Bitcoin was trading around $10,000. At the time, this was a key hurdle for BTC to trigger a new bull market. Since then, the price has surged more than five folds to new all-time highs of around $58,000. 

Nevertheless, many traders remain cautious as the market enters the month of March, which has historically been bearish for cryptocurrencies, and all markets in general. 

"I think March may be slow with a lack of confidence in traditional markets but overall I am bullish Bitcoin and expect significantly higher over the next three months," said Swift in private comments. 

$44K-$45K remains the key level to watch 

In the meantime, Bitcoin traders are keeping a close eye on the $44,000-$45,000 level. Trader Willy Woo, for instance, says the $45K level is very strong support and expects any dips below this level to be bought up aggressively should they occur. 

Furthermore, researchers at on-chain analytics firm Santiment believe that the entire cryptocurrency market now depends on Bitcoin holding above this key level.

"It's been a red weekend thus far, with most eyes on Bitcoin as it has rallied back vs. the climb altcoins were making," they said, adding: 

Keep an eye on the $44k support level for BTC as an indication to monitor for all of crypto. As well as BTC's on-chain activity. 

Dash price explodes 100%, BCH breaks out as Bitcoin cools off below $40K

The price of Bitcoin has dropped below $40,000 as several high-cap coins return to the spotlight.

Bitcoin (BTC) price has once again dropped below the $40,000 level on Jan. 10 after crisscrossing it for the past three days as the spotlight shifted to altcoins, namely Dash (DASH) and Bitcoin Cash (BCH). The BTC price drop comes after another failure to break through resistance at $41,500 in weekend trading.

BTC/USD 1-hour candle chart vs. DASH/USD (orange), BCH/USD (blue). Source: Tradingview

One reason for the drop is likely an uptick in selling by miners. As reported yesterday, the Miner's Position Index (MPI) that calculates the ratio of BTC leaving all miner wallets to its 1-year moving average has reached levels where miners are selling. 

Miner Position Index looks enough to make a local top," commented CryptoQuant CEO, Ki Young Ju, right before the price dropped.

"They're selling $BTC. I'm going to punt a small short to scalp $BTC in this short-term bearish market."
BTC/USD vs. MPI. Source: Twitter/@ki_young_ju

Other reasons are largely technical as BTC gives altcoins some time to catch up and due to sentiment. The Crypto Fear and Greed index, for example, has remained at dangerously high levels suggesting that a pullback is likely. In fact, the metric has remained above 90 or "extreme greed" for two months, the longest period in its history. 

Crypto Fear & Greed index. Source: Digital Assets Data

Bitcoin Cash follows Ethereum's breakout

Meanwhile, altseason continues with the bullishness apparently shifting from BTC to Bitcoin Cash in Sunday trading. The latter soared from $420 to as high as $630 in the past 24 hours. 

BCH/USD 1-day candle chart (Bitstamp). Source: Tradingview

The move marks a technical breakout from a multi-year bear market with BCH/USD now at the highest levels since November 2018.

DASH/USD 1-hour candle chart (Coinbase). Source: Tradingview

However, the biggest gainer over the past 24 hours is Dash with its price rising roughly 40%. During the short parabolic rally, DASH surged by over 100% from $95 to as high as $194, only to pull back to the $140 level. 

The move also marks a technical breakout from a multi-year slump as major altcoins are now following in Ethereum's footsteps from last weekend, which several analysts pointed out as the possible start of "altseason." 

XRP price must break this key resistance to regain bullish momentum

The price of XRP is showing bullish signs in the short term despite the ongoing SEC lawsuit against Ripple.

XRP holders are still struggling around the $0.30 area while the majority of the cryptocurrency markets are euphoric with Bitcoin (BTC) price surpassing $40,000.

BTC price is currently over 100% higher than the previous all-time high in 2017, while XRP’s price is still down more than 90% from the all-time high in 2017. A lawsuit from the SEC against Ripple is certainly not bullish and is the primary reason for this overall weakness as this is prompting some exchanges to delist.

However, the chart might give some potential bullish outlook for the short term period if XRP’s price breaks several crucial resistance levels.

Resistance at $0.32-0.345 must break for more upsid

XRP/USD 3-day chart. Source: TradingView

The XRP chart shows a very odd price pattern, as XRP’s price flipped the $0.21 area for support beautifully in 2020. This support/resistance flip caused a breakout above the significant resistance zone at $0.32-0.35. This breakout led to a run toward the $0.80 region, one of the most significant surges of XRP in recent years.

However, fundamentals kicked in as the SEC unveiled a lawsuit against Ripple, causing the price of XRP to tumble down into the range.

Now, the structure itself is destroyed and looks quite odd to chart on. Regardless of that bizarre move, crucial and beneficial levels can still be determined from here.

The critical level to hold for the bulls is the range low at $0.21-0.23, which once again provided a support in recent weeks.

Yes, the candles dipped below $0.21-0.23. However, the candle closes were above, indicating that support was found for XRP.

On the lower time frames, the $0.295 area is critical

XRP/USD 1-hour chart. Source: TradingView

Traders often zoom in to lower time frames to spot critical levels. Based on the higher time frames, critical levels are defined at $0.21-0.23 and $0.32-0.35 as support and resistance zones.

However, the 1-hour chart shows another critical level. This level is the $0.28-0.295 zone, marked in grey on the chart.

As long as that sustains support, multiple tests of resistances could occur. As the saying goes, the more often a resistance gets tested, the weaker it becomes. Therefore, a breakout toward $0.50 is in play.

On the other hand, if the $0.28-0.295 loses support, the next support area is the higher time frame support between $0.21-0.23. This area is also the range low throughout 2019 and 2020 and could usher in a more extended accumulation period for XRP.

XRP/BTC pair get clobbered

XRP/BTC 3-day chart. Source: TradingView

The XRP/BTC pair looks disgusting as it has been making new lower lows since the peak high in January 2018.

Hence, there are no arguments to be found for taking any position in XRP. However, there are some arguments to look for a potential reversal. One of them is the heavy increase in XRP trading volume recently, indicating that traders are accumulating the cryptocurrency.

This one could turn into a bull cycle once more if XR price flips the previous support levels at 0.00001550, 0.00002050. 0.00002350 sats for support.

The final argument is to watch for a potential bullish divergence on the daily, 3-day, or weekly timeframes. Once that starts to happen, a reversal could be near for XRP. However, until then, it’s still in a very precarious situation with a bearish outlook.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Are Bitcoin miners bullish? BTC miners face biggest difficulty bump in 3 months

The average amount of Bitcoin miners are selling continues to decrease gradually.

Bitcoin (BTC) mining difficulty is set to rise by roughly 11% on Jan. 9, according to data from BTC.com. This marks the biggest increase in nearly four months that will put the metric over 20 trillion for the first time ever. 

"Hashrate is on a tear!" commented popular pseudonymous Bitcoin trader hodlonaut three days ago. "When difficulty readjusts in 3 days, it will crush through 20T for the first time in Bitcoin history."

Bitcoin network difficulty reaches 20 trillion 

The network difficulty is a relative measure of how hard it is to mine a new block for the Bitcoin blockchain.

With the hash rate currently at record levels at around 148 EH/s, the difficulty adjustment, which occurs every 2016 blocks, makes sure that the time between blocks mined remains 10 minutes on average. 

Bitcoin network difficulty. Source: Blockchain.com

Miners remain bullish

Meanwhile, simultaneous rising hash rate and mining difficulty suggest that miners are continuing to allocate a record number of resources to secure and invest in the network.

Total BTC outflows from miner addresses. Source: CryptoQuant

Since the halving in May, the total outflows of BTC from miners have been gradually decreasing on average — the opposite of BTC/USD. Hence, miners are still showing no signs of major selling despite the price of Bitcoin skyrocketing to over $41,000 in the past week. 

What's more, the Miners Position Index (MPI), which calculates the ratio of BTC leaving all miners wallets to its 1-year moving average, is currently at 4.5. Values above 2 indicate most miners should be selling.

This suggests that miners aren't eager to part with their freshly-minted BTC at the moment, particularly as exchange BTC reserves plummet and the price is in a strong, accelerating uptrend. 

Thus, it may make sense for some miners to hold their inventory and benefit from the accelerating bull market that may last into December 2021, according to some predictions.

Meanwhile, concerns of a "mining death spiral" continue to be disproven with every new network record as Bitcoin network fundamentals appear stronger than ever. Overall, Bitcoin miners seem to be in a financially secure position from a rising BTC price, remaining financially secure even though it has never been harder to mine BTC. 

Currently, each BTC block mined is worth roughly $253,600 with around 9.44% coming from network transaction fees, according to the latest data from Clarkmoody

Bitcoin price blasts past $27K — BTC market cap now over half a trillion dollars

Bitcoin price is showing no signs of slowing down during weekend trading with $30,000 in sight.

Bitcoin (BTC) continues its blistering holiday weekend rally, surpassing $27,000 on Dec. 27. What's more, the market capitalization of Bitcoin has surpassed half a trillion dollars for the first time ever. 

BTC/USD hourly candle chart (Bitstamp). Source: Tradingview

Bitcoin market cap breaches $500,000,000,000

The new record-highs for Bitcoin come less than three days after breaking resistance at $24,000. This also means that BTC price has now doubled over the past two months after gaining nearly $10,000 in the month of December alone. 

Bitcoin's market capitalization is also now over $510 billion, which puts it just under Warren Buffett's Berkshire Hathaway, the tenth-largest company in the world. This comes less than a day after surpassing Visa's market cap.

As Cointelegraph reported, this weekend's surge has put the price of Bitcoin above the mean trend line of the popular stock-to-flow model (around $24,900), which forecasts a $100,000 target by December 2021. 

At the same time, the current bull cycle appears to be different and more sustainable than in 2017 with many traders expecting more upside over the coming months. The reasons for this include a frenzy of institutional buying, stronger fundamentals, less available supply on exchanges, and still relatively little interest from retail buyers.

Google searches for "Bitcoin." Source: Google Trends

However, this doesn't rule out the possibility of major pullbacks in the near term, particularly as BTC price appears to be steaming toward the next psychological resistance at $30,000. 

"Vertical moves often end in a swift correction (remember Summer '19)? Those swift corrections are made for the establishment of a sideways range," warned Cointelegraph Markets analyst Michael van de Poppe on Dec. 27. He added: 

Don't get chopped out of a correction. The bull market will last for a longer period. Have a longer horizon.

Top 6 Bitcoin price predictions to watch in 2021

Bitcoin price hitting $100,000 to $200,000 in the next 12 months is becoming a quite common, if not "conservative," prediction.

While you're undoubtedly "in it for the technology," the most popular and hotly-debated topic, particularly as far as public interest is concerned, remains the price of Bitcoin (BTC) and speculating on its value in the future. 

Currently, Bitcoin is in a bull market cycle, up over 200% year-to-date and outperforming everything else in 2020 with the exception of a few stocks like Tesla. But this rally seems different than the one in late 2017. For one, the all-time high has been definitively broken. Second, institutions are accumulating — while the public still sits largely on the sidelines. 

“We are in a flood of money and credit"

Six-figure price predictions per Bitcoin are becoming increasingly common for this bull cycle with accelerating central bank monetary expansion as the key driver.

In fact, billionaire investors such as Ray Dalio are beginning to warm to the idea of Bitcoin alongside gold as a way to diversify against what he calls "the depreciating value of money." 

“We are in a flood of money and credit that is lifting most asset prices and distributing wealth in a way that the system that we’ve come to believe is normal is unable to, and that is threatening to the value of our money and credit,” he warned in a Dec. 8 Reddit session.

“Most likely that flood will not recede, so those assets will not decline when measured in the depreciating value of money. It is important to diversify well in terms of currencies and countries, as well as asset classes.”

Will Bitcoin hit $100K-$200K?

As Cointelegraph reported in May, Morgan Creek's CEO Mark Yusko said BTC price could exceed $100,000 over the next year or so. The price has now more than doubled since, but it still has to gain roughly another 300% in the next 12 months to reach six figures. 

This estimate echoes the forecast of the popular Stock-to-Flow (S2F) model, which its creator, planB, says continues to be right on track. Last month, planB reiterated that he now has no doubt BTC will hit $100,000 by December 2021 due to a "supply shortage." 

“People ask if I still believe in my model. To be clear: I have no doubt whatsoever that Bitcoin S2FX is correct and Bitcoin will tap $100,000-288,000 before December 2021," he wrote last month.

As reported, Bitcoin has caught up to the S2F model mean trend line in the past month. 

A "conservative" $200,000-$300,000?

The $200,000 price prediction is even becoming relatively tame, according to other analysts. Popular on-chain analyst Will Woo says he's seeing more evidence of "hodling" this time around, as well as a dwindling BTC supply on exchanges as a result of the previously-mentioned shortage of stock.

BTC reserve on all exchanges. Source CryptoQuant

According to Woo, this will be a double-whammy for the bears.  

“My Top Model suggesting $200K per BTC by end of 2021 looks conservative, $300K not out of the question."

“I've never been so bullish for 2021," he continues in another post. "This re-accumulation phase coincides with spot market inventory depletion roughly 2x longer and deeper than the last cycle. It will send BTC.”

$400,000 and higher for "digital gold"? 

Even higher price predictions stem from the argument that Bitcoin can challenge — or is already starting to challenge — and eventually supplant gold as a de facto store of value. Interestingly, some of the most bullish forecasts have started to come from legacy finance as Bitcoin rose to new all-time highs in early December to vastly outperform gold in 2020. 

In November, for example, an analyst from Citibank told clients in a note that Bitcoin could reach as high as $318,000 in 2021. Citibank managing director Tom Fitzpatrick cited Bitcoin's historic “unthinkable rallies followed by painful corrections.”

Currently, the Citibank executive believes BTC is in the middle of a bull run that appears to be in “what looks like a very well defined channel,” which sets it up for a $318,000 target in December 2021. 

JPMorgan meanwhile is also starting to point out Bitcoin's increasing popularity among traditional investors. In fact, the investment bank giant sees a lot more upside potential from Bitcoin as "digital gold," compared to the already "very advanced" adoption of gold. 

In a note to clients, the strategists said:

“The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”

Today, Bitcoin's market cap is less than 4% of gold's. This immense upside potential has also prompted other big-name investors to share their predictions that involve Bitcoin challenging and even surpassing gold with its $9 trillion market cap.

Morgan Creek's Anthony Pompliano still targets around $100,000 in 2021. However, in the summer he gave a $400,00 target in the longer term if BTC starts catching up to gold. Meanwhile, Gemini exchange founders Tyler and Cameron Winklevoss believe Bitcoin "being a better gold than gold," which means that price rising to $500,000 is now inevitable

MicroStrategy and other investment firms buying significant amounts of Bitcoin is only the beginning of a major shift, according to Cameron. What's more, Wall Street has started warming to Bitcoin as its quickly becoming a "no-brainer" for investment portfolios. Comparing it to the bottom of the first in a nine-inning baseball game, the Winklevoss twins expect Bitcoin's value to continue climbing in the coming years. 

“What if every Fortune 100 or 500 company does that, what if central banks start doing that? It hasn’t even started,” he added.

‘Stealth phase’ over? Why Wall Street FOMO will make $20K Bitcoin look cheap

It’s becoming increasingly clear that smart money is starting to take Bitcoin seriously.

 The year 2020 sucked for pretty much everyone. Unless you’re holding Bitcoin (BTC) that is.

The price of Bitcoin is up 125% year-to-date making it once again the best-performing asset just as it has been for the past decade. 

Strangely enough, the public seems completely oblivious to this fact. But not everyone is ignoring Bitcoin's latest rally above $16,000. Currently, the price is just 20% shy of its all-time high. 

Wall Street is not here yet

Considering the impressive year Bitcoin is having, it's not surprising that Wall Street is now starting to realize that the world’s first decentralized cryptocurrency isn’t going anywhere.

Remember 2017? That historic Bitcoin price rally was largely driven by retail traders — the average Joe — who were anticipating a Wall Street stampede alongside the frenzy of new tokens minted via initial coin offerings.  

At the same time, the CME introduced their cash-settled Bitcoin futures right at the peak in December 2017 and... pop!

BTC price dropped sharply in the following months and the hype fizzled into a multi-year bear market. Obituaries from the news media made the average Joe eat the loss and many wrote Bitcoin off as just another bubble that burst.

Google searches for "Bitcoin” pretty much tell the whole story.

Google Trends searches for "Bitcoin" (2015-2020). Source: Google

But in 2020, the public searches for Bitcoin no longer reflect BTC as its price has "decoupled."

What's more interesting is that even Wall Street still remains largely on the sidelines suggesting that BTC may be very undervalued at $16,000 and with a market cap of $297 billion. However, the latest data suggests that this is already beginning to change. 

"Wall Street is not here yet," Gemini exchange co-founder Cameron Winklevoss explained last month. Winklevoss added:

"Institutions aren’t in Bitcoin right now. It’s been a retail phenomenon for the last decade. So Wall Street talks about it, they’re aware of Bitcoin, but they’re not really in it from our perspective, but it’s starting to happen.”

Wealthy zip-codes in New York and Silicon Valley drive BTC price

As Cointelegraph reported earlier this month, it is mainly wealthy areas in New York and Silicon Valley — home to many high-net-worth individuals — that are most interested in Bitcoin right now. 

But while the public is largely unaware, several wealthy investors are heralding BTC as a new asset class. Paul Tudor Jones, Michael Saylor and Stanley Druckenmiller have made waves in 2020, revealing their positions in Bitcoin. 

Do they realize something that the public did not in 2017? Was the average Joe simply too early then?

Jones said investing in BTC is like investing early in Apple stock. Saylor stated that his company, MicroStrategy, which bought up a total of $425 million in Bitcoin, will hold it for 100 years calling it "the world's best collateral."

Meanwhile, Druckenmiller, the latest big-name Bitcoin convert, now argues that “If the gold bet works, the Bitcoin bet will probably work better.”

Together, these smart money investors are beginning to realize one thing. As Tyler Winklevoss put it

"Bitcoin is better at being gold than gold." 

Gold is up just 23% in 2020 during a year of global economic upheaval, which is when this safe-haven metal was supposed to shine (pun intended). 

But Bitcoin, or "digital gold," has been stealing the show by gaining 125% year-to-date and up by almost 300% from its coronavirus-crash lows in March. What's more, BTC's market cap is just 2.36% of gold's, which some long-term investors see as the best asymmetric risk-reward ratio bet in history.

Individuals who bought Bitcoin ten or even five years ago would most likely agree. 

The end of Bitcoin's "stealth phase"

With its fixed supply, Bitcoin is becoming particularly attractive as a hedge against inflation, which is all but guaranteed by the United States Federal Reserve. 

But unlike gold, Bitcoin is absolutely scarce. Its supply is mathematically fixed and cannot be changed by any authority

What's more, the rate at which new BTC is mined is reduced by 50% every 4 years, which analysts argue is one of the biggest catalysts for new bull market cycles. This event is called the halving with the last one occurring in May 2020. 

Market sentiment cycle. Source: Michael van de Poppe

Cryptocurrency trader Michael van de Poppe believes that the Bitcoin market is now exiting the Stealth Phase and entering the Awareness Phase. No longer is BTC just digital money for buying drugs on the dark web. 

According to Van de Poppe:

"With Stan Druckenmiller, Michael Saylor, and more listed companies jumping into the Bitcoin markets, it's quite clear that we're at the early stage of a new bull cycle."

Bitcoin is a small club, and you can be in it

In addition to the halving, the aforementioned investors have also noticed that BTC's fundamentals, network activity, and on-ramp infrastructure (e.g. Cash App, PayPal) have all significantly improved since 2017. So it's not surprising that this emerging asset class is starting to look like a no-brainer bet to smart money. 

Other investors will also eventually realize that a small allocation of capital into Bitcoin significantly boosts portfolio returns. Last month, the co-founder of 10T Holdings, Dan Tapiero, noted:

“Only 3% BTC position in past 5yrs would have increased performance of a 60/40 portfolio from 6.8% to 10.2%.”

At this rate, investment fund clients will begin asking questions such as: why is my nephew's Bitcoin stash outperforming my 401K, FAANG stocks, gold, and Warren Buffett put together? How do I gain exposure to Bitcoin?

But what makes Bitcoin truly unique is that it doesn't play by Wall Street's rules. It's software with its own set of rules. It is not a stock or an IPO. It's a technology that's open to all and voluntary to use. It has early adopters, not insiders. It has market cycles, not bailouts. It has existed for over a decade and grows stronger by the day. 

Despite already existing for nearly 12 years, Bitcoin is only now starting to be noticed and taken seriously by serious investors. At the same time, it maintains the lowest barrier to entry for everyone else compared to traditional finance. 

This is precisely why Bitcoin still presents a unique opportunity for the average Joe: to acquire BTC now at lower prices than what Wall Street will pay for it later.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Paul Tudor Jones to Be Biggest Bitcoin Holder in 2 Years — Max Keiser

Outspoken Bitcoin investor and host of the Keiser Report, Max Keiser, explains that his $400K BTC price prediction will coincide with the U.S. dollar’s collapse.

Cointelegraph Markets spoke with Wall Street veteran and host of the Keiser Report, Max Keiser, who explains the increasingly important role of Bitcoin in geopolitics amid potential “hash wars” and why he believes Paul Tudor Jones will become the biggest holder of BTC within two years.         

Your 200K+ follower Twitter account @maxkeiser went silent for a few months. What happened? 

Max Keiser: It was a software bug that froze the account for nine months. I believe it was a database contention problem. My friends at SwanBitcoin took on the challenge and sorted it out. I also sent two-dozen roses and a box of chocolates to Twitter HQ in SF, but I’m not sure that had any impact. 

The United States’ national debt is now over 26 trillion. Is there a certain level at which the U.S. can default?

Max Keiser: The debt is big. But the interest on that debt is now bigger than America’s number-one budget item, the military’s 1.6 trillion spend. When the interest on the debt gets close to 100% of GDP then America will officially be a failed state. This looks like it will be the case within 5 years — as short interest rates snap back to historic levels of 5%, not the current 1/2% 

Post-halving, Bitcoin’s inflation rate is now less than 2% akin to gold or the Fed’s inflation target. Is this do or die for Bitcoin now as a store-of-value? 

Max Keiser: Let’s be clear, Bitcoin exhibits quantum mechanical characteristics pertaining to outcomes changing depending on observation. Per the Heisenberg Principle, the observer’s act of observing changes outcomes. 

In Bitcoin’s case, it’s Bitcoin that’s observing us. As I’ve argued before, starting at around block 300,000, I started noticing that Bitcoin was becoming self-aware. This has grown exponentially to a state of meta-awareness and so instead of asking is it time for Bitcoin to prove itself we should be asking ourselves, what do we have to do as a species to prove we are worthy of Bitcoin. This is why my Bitcoin VC fund is called Heisenberg Capital. As an aside, it’s outperformed every fund globally since inception in 2013 to today. 

Will U.S.-China tensions and other geopolitical risks continue to put pressure on risk-on assets, and possibly affect Bitcoin? 

Max Keiser: China, America, Russia and Iran will enter a Hash War to try and grab as much Bitcoin as possible. Iran is already mining Bitcoin. I believe they have 3% of the hash rate. This is another “Sputnik moment” where America has to decide if they want to win the Hash War or get relegated to the dustbin of history.  

Do you agree that Paul Tudor Jones announcing his Bitcoin exposure is a major green-light for traditional investors? Is this a watershed moment? If not, what will it be? 

Max Keiser: I think PTJ, who I followed closely when I was a stockbroker on Wall St. from 1983-1990, will be the biggest HODL’er of Bitcoin within 2 years. He is an absolute mercenary if he sees something he likes. 

“The Bitcoin community has never seen the likes of PTJ and will be shocked by his take no prisoners audacity.” 

You recently said that basic consumer protection is appropriate in the case of the Bitcoin Cash fraud. Can you elaborate on this?

Max Keiser: None of the hard forks and none of the altcoins will attract enough energy to survive. It’s a winner take all game and Bitcoin is not only starving alts of energy but also starving fiat money and their sponsoring nation-states of energy. 

Bitcoin is an indestructible Godzilla with an insatiable appetite for energy that is transforming the world and everything that lives. Regulators should warn people about failed projects like BCH, but the more likely scenario is that both BCH and the regulators go bankrupt due to a Bitcoin evisceration. 

You have also been vocal about Ethereum criticizing Vitalik Buterin for failing to understand Bitcoin’s value proposition. What does he get wrong about Bitcoin?

When I was chatting with Vitalik in London, he was still working at Bitcoin Magazine at the time, and just planning ETH. He didn’t get how absolute scarcity drives the BTC market. He still doesn’t get it. 

He’s repeatedly downplayed absolute scarcity. So, I never believed he really understood how BTC works. Funny, because the problems ETH has is that it’s a centralized, variable supply fiat-substitute that has all the problems of fiat money. 

“Ironically, ETH is trying to be fiat money and failing.”

So I take it you’re not a fan of Ethereum 2.0 and its roadmap?

Max Keiser: It’s a Rube Goldberg machine to nowhere.

You’ve recently spoken with Bitcoin & Black America author Isaiah Jackson on your show. Why is this book so significant and timely right now with the current social unrest in the U.S.? How does Bitcoin help blacks in America? 

Max Keiser: Bitcoin helps the biggest victims of fiat money the most. America’s Black community is the biggest victims of America’s fiat money so they potentially are the biggest winners as Bitcoin pushes out fiat and becomes the global reserve currency. I said on Keiser Report back when BTC was $1 that America’s Black community should buy up all the BTC they can and then they could buy the White community if they chose to. 

Major banks are now changing their tune about Bitcoin, most notably JPM. Why do you think this is the case, and will this be a continuing trend?

Max Keiser: You don’t change Bitcoin, Bitcoin changes you — per the Heisenberg Principle effect — and the existence of a self-aware Bitcoin. With this in mind, I helped direct BTC’s attention to Jamie Dimon and JP Morgan by effectively “painting the target.” The protocol cracked that nut and now Jamie’s a BTC drone. The same thing is happening to Peter Schiff

Do you see the stock market hitting new all-time highs this year? What does this mean for Bitcoin? Your Bitcoin price target by 2021?

Max Keiser: The U.S. stock market will probably hit new highs just like the markets hit new highs in Venezuela, Zimbabwe and Iran. Not because companies are doing well but because the currencies are collapsing. 

“My target for BTC since 2011 has been $100,000 and I recently upped that to $400,000. The timing depends on when exactly the $USD collapses.” 

It could happen any day. Better to be a few months early than a day late. When the dollar cracks, BTC price gaps higher by $10,000 at a clip. If you’re not already positioned, you’ll be eating dirt.

Bitcoin Price Falls to $9.6K Amid Bloody Sunday for XRP, ETH, Altcoins

Bitcoin price tumbles further only to bounce off a key support area around $9,600 as most altcoins such as ETH and XRP see even bigger losses.

Bitcoin (BTC) price has fallen further dropping about $300 in less than one hour on Sunday, Feb. 16, though paring some losses since with a bounce from $9,600 to $9,790 at press time.

Crypto market 1-day price chart. Source: Coin360

Crypto market 1-day price chart. Source: Coin360

Bad weekend for Bitcoin price bulls

Most other cryptocurrencies fared much worse, however, as evidenced by Bitcoin’s market dominance rising one percent from yesterday to 63.2%.

The bad weekend for the bulls began on Saturday after losing the $10,000 level. Today, BTC/USD tumbled further and bounced off a key resistance level at around $9,600, which also happens to be the 20-day moving average or 20-MA.

So what’s next for Bitcoin? The $9,850 level need to be reclaimed, according to regular Cointelegraph Markets analyst filbfilb, in order to avoid dropping further to $9.4-$9.5K and $8.8K support areas.

BTC/USD 1-day chart. Source: Tradingview

BTC/USD 1-day chart. Source: Tradingview

Worth noting is that the weekend drop has left a so-called Bitcoin futures “gap” at $10,495, the price at which CME BTC futures trading closed on Friday. As Cointelegraph reported numerous times before, the phenomenon of these gaps being filled upon resumption of trading — typically within a few days — has not gone unnoticed.

Meanwhile, the Fear and Greed Index has dropped from 64 to 59, which still means that the market sentiment is currently “greed” and suggesting that the multi-week rally above $10,300 is due for a correction.

Altcoins red across the board

Bitcoin’s 40% gains year to date have seen many altcoins posting ever bigger gains. However, the opposite appears to also be true as the losses for altcoins tend to be bigger as well.

Ether (ETH) is down almost 6% in the past 24 hours, while EOS, XRP and Bitcoin SV (BSV) saw heavier losses with -9.13%, 7.83% and 11.93%, respectively. Tezos (XTZ) is down 5.8% and Tone (TRX) tumbled by almost 10%.

One notable exception, however, is Chainlink (LINK), one of the best performing cryptocurrencies in 2020. LINK has dropped slightly but has already recovered and now up 6% on the day, according to data from Coin360.

“Well, we get the retracement,” commented regular Cointelegraph Markets contributor  Michaël van de Poppe. He continued:

“Retracement is harsh on some of those altcoins, but it's also providing opportunities. Doubt we'll see $9,400 though.”

At press time, Bitcoin’s market dominance stands at 63.2% with the cryptocurrency market capitalization dropping over 2% on the day to $282 billion.

Keep track of top crypto markets in real time here

Bitcoin Price Pulls Back to $9.2K, BTC Realized Cap Hits All-Time High

Bitcoin price hitting a 3-month high on rising volume hints at a bullish trend that puts $10K within reach.

Bitcoin price (BTC) pulled back to $9.2K levels on Jan. 31, or almost 1% lower over the past 24 hours, after exceeding $9,500 earlier today

“It’s over 9 thousand” BTC price hits new 2020 high

The move to $9,530 resulted in a new 3-month high for BTC/USD alongside rising volume, pointing to an overall bullish trend that has persisted in the first month of 2020.

Bitcoin daily price chart. Source: Coin360

Meanwhile, the founder and CEO of Global Macro Investor, Raoul Pal, suggested today that more interest rate cuts by the United States Federal Reserve are coming, which is expected to have a positive effect on the cryptocurrency market. 

“The bond market, already rallying on weakness saw the light immediately and 2-year yields collapsed, breaking key supports and a new cyclical low,” he tweeted on Jan. 31, adding: 

“The Fed are going to have to cut aggressively and soon.” 

Pal, a former head of equities and equities derivatives at Goldman Sachs UK office, explains that the bond market trend is now set and that the reaction of central banks is well understood.

“The commodity markets rightly got the signal fast too. The knock-on effects are now spreading slowly into the currency markets. That is where I think where the next phase lies,” explained Pal. 

Bitcoin daily price chart. Source: Coin360

Adding to strengthening fundamentals for Bitcoin such as record hash rate and mining difficulty, on-chain data monitoring service Glassnode reported on Jan. 31 that the Realized Cap (1d MA) has hit a new all-time high over $100 billion. 

BTC Realized Cap. Source: Glassnode 

The Realized Cap is an alternative calculation of Bitcoin’s market capitalization derived by multiplying the price each Bitcoin last traded by the size of each trade. This figure has now passed $103,459,450,323.361, which is higher than the previous all-time high of 103,455,655,651.676 observed on Nov. 18, 2019.

As reported by Cointelegraph, the Realized Cap broke $100 billion for the first time last August. 

Bitcoin following bullish scenario 

In January, the price of Bitcoin is following a bullish scenario, as presented earlier this month by Cointelegraph Markets analyst, Michaël van de Poppe

Similarly, the price has broken to the upside in recent weeks, breaking a 7-month old downtrend to the upside, signaling the likely end of downward momentum amid an overall shift in market sentiment. 

“The targets based on previous support/resistance and Fibonacci levels first include $8,000. If that’s broken, the price is ready to aim for $9,100-9,500, which would typically shift the sentiment from fear to neutral,” correctly predicted Van de Poppe in a Jan. 4 analysis

Currently, the crypto & fear index reading currently 55, or Greed, according to the latest data, which suggests that a short-term pullback in price is now likely.

Bitcoin Fear & Greed Index. Source: Alternative.me 

“There may be a bit of a selloff but I’m still expecting the bulls to finish the week strong and looking to buy dips,” said Cointelegraph Markets contributor and analyst filbfilb in private comments. 

The overall cryptocurrency market cap now stands at around $254 billion and Bitcoin’s dominance rate is 66.3%. Large-cap altcoin performance was mixed with Litecoin (LTC) as the standout gaining 4.19%, and Ether (ETH) slightly in the green over the past 24 hours.

Bitcoin SV (BSV) was among the notable losers down over 10% by press time, alongside Ethereum Classic (ETC) and Dash (DASH), which were down 10.3% and 7.4%, respectively.

Keep track of top crypto markets in real time here

1% Bitcoin No Longer ‘Crazy’ for Portfolios, Says Morgan Creek CEO

Morgan Creek founder and CEO Mark Yusko says Bitcoin is one of the most asymmetric assets he has ever seen in his career as a fund manager.

Bitcoin (BTC) represents an investment in technology and innovation, making it a must-have in any portfolio, suggested the CEO of Morgan Creek Capital, Mark Yusko, in an interview with Max Keiser on the Keiser Report, published on Jan. 30.  

Morgan Creek CEO: Bitcoin exposure boosts portfolios

Keiser began by noting that portfolios with even 1% exposure to Bitcoin have more alpha or, in other words, have outperformed just about everything over the past five years. 

By definition, alpha represents the performance of a portfolio relative to a benchmark. Portfolio managers seek to generate alpha by diversifying portfolios to remove unsystematic risk.

“It’s incredible,” said Yusko. “If you took 1% of all the endowments and foundations five years ago, that would have been $6.7 billion out of $670 billion. You took that one percent — half percent from stocks, half from bonds — instead of making 7.2%, which is what they made, they would have made 9.2% or 200 basis points better. Two on 7.2% is a lot of alpha.”

But while conceding that Bitcoin had a non-zero probability of price going to zero, he also pointed out that it offers ten-to-one downside capture. This, according to Yusko, makes Bitcoin one of the most asymmetric assets he has ever seen in his career. 

He also suggests that it will become increasingly normal for traditional funds to seek exposure, continuing: 

“So the idea that ten years from now we won’t look back and say that as a fiduciary of a pension fund, sovereign wealth, family office, etc. you had to have exposure to this asset, is crazy.”

Bitcoin showing staying power as an asset class

Evidence is indeed mounting that Bitcoin becoming increasingly accepted among investors, particularly as the price of BTC is currently climbing back toward the $10,00 mark.  

Cryptocurrency market monthly performance

Cryptocurrency market monthly performance. Source: Coin360

With Bitcoin’s rising volumes and open interest on the Chicago Mercantile Exchange, new institutional investment products, not to mention outperforming everything including Amazon stock and gold in recent years, BTC is looking increasingly attractive to investors. 

Admittedly, many fund managers still view Bitcoin as some scam or scheme, notes Yusko, as opposed to what he says is truly an evolution of technology, in which Bitcoin will play a fundamental role as a base layer protocol.

Keiser: “You’re owning a piece of the protocol”

But while both Keiser and Yusko agreed that most cryptocurrencies will fail, Bitcoin and perhaps a handful of other cryptocurrencies may provide an opportunity that’s quite different from dot-com era tech stocks. 

“The protocol is the application,” said Keiser, equating it to an opportunity of buying shares in the concept of email in the 1990s. He continued: 

“With Bitcoin, you have that opportunity. You’re owning a piece of the protocol that’s dominating.” 

As Cointelegraph reported last month, Bitcoin has dwarfed all other assets in returns over the past decade at nearly 9,000,000 percent. So far this year, however, BTC isn’t even the best performing asset. Tesla stock, or TSLA, is up 38% year to date compared to Bitcoin’s 30%.

In October, Cointelegraph reported on investment management firm VanEck explaining why Bitcoin improves investor portfolio performance, with BTC’s low correlation to traditional assets cited as one of the main reasons.

Bitcoin Selling for $24,000 in Iran Based on ‘Official’ Exchange Rate [UPDATED]

Bitcoin is selling for over $24,000 in Iran on the Localbitcoins platform based on the official exchange rate, but here’s why this metric can be misleading.

Update (04:00 EST): This article was updated and corrected to explain how the official exchange rate distorts reported Bitcoin prices in Iran.  

Iran-based sellers on peer-to-peer trading platform LocalBitcoins are currently asking for around 1 billion Iranian rials or over $24,000 per Bitcoin (BTC), based on the official exchange rate from the country’s central bank. 

But is this really the actual price Iranians are paying for Bitcoin?

LocalBitcoins lowest offers per BTC. Source: LocalBitcoins

LocalBitcoins lowest offers per BTC. Source: LocalBitcoins

“Official” exchange rate distorts Bitcoin price in Iran

However, the apparent staggering premium in Iran relative to the current global market price may only exist on the surface. 

In reality, it is not uncommon for countries with weak national currencies — such as Venezuela — to have dual exchange rates: one “official” rate set by the country’s central bank and the other, the actual market rate, or the real amount of dollars a regular person would get for their rials. 

“It’s only possible for few businesses and government with special procedure to get that rate,” explained a crypto expert Ali Beikverdi.

“The official rate is what the central bank says. But literally, no one except some government organizations can get that rate while no one can use it. It’s a joke.”

“So if you wanna buy USD today in Tehran, the price is about 140,000 IRR,” he says.

In other words, while the “official rate” is around 42,000 IRR per 1 USD — which would result in the $24,000 price per Bitcoin — the actual rate in the street would give one something closer to BTC’s actual global market price, currently around $7,300 USD. 

U.S.-Iran tensions boost oil, Bitcoin prices

As Cointelegraph reported, an airstrike at Baghdad's airport ordered by United States President Donald Trump killed the head of the Iranian Revolutionary Guards' elite Quds Force, General Qasem Soleimani. This has led to a surge in global oil prices as well as Bitcoin rebounding from weekly lows of around $6,850. 

Meanwhile, looking at the BTC rates on LocalBitcoin in Iran, founder of crypto analytics outlet Messari Ryan Selkis mistakingly noted that there is now a huge premium as a result. He wrote

“Bitcoin is trading at nearly $24,000 in the USD equivalent of Iranian Rials on LocalBitcoins today. It's unlikely those purchases are paying for the Iranian military's response. Instead, it might be innocent (and desperate) Iranians looking for a way out of the coming chaos.”

But given the dual exchange rate reality in Iran, it is likely that no one is actually paying this much per Bitcoin.

“There is a slight increase in dollar price today from what I see in the local market but that’s about it,” adds Beikverdi.

Iran restricts access to the Internet, Bitcoin trading

At the same time, reported trading volumes on LocalBitcoins have hit rock bottom in recent months. This is likely due to Iran’s government restricting internet access across the country since November amid nationwide protests in response to rising fuel prices.

 

LocalBitcoins weekly trading volume, Iran. Source: Coin.dance

LocalBitcoins weekly trading volume, Iran. Source: Coin.dance

Meanwhile, Iran vowed to seek revenge on the U.S. on Friday following the killing of Soleimani, NBC News reported.

Last month, Cointelegraph reported that Iran was proposing a Muslim cryptocurrency as one of a number of means to confront the economic dominance of the United States.

“The Muslim world should be designing measures to save themselves from the domination of the United States dollar and the American financial regime,” said Iranian President Hassan Rouhani.

Nevertheless, Iran holds an unfavorable position on Bitcoin and cryptocurrencies in general as authorities have offered a bounty to anyone who exposes unauthorized mining operations in the country.

Hong Kong Regulator to Unveil New Cryptocurrency Exchange Rules

Hong Kong’s financial watchdog announced it will unveil regulations for cryptocurrency exchanges and application requirements today.

Hong Kong’s financial regulator — the Securities and Futures Commission (SFC) — will publish a new set of regulations for Bitcoin (BTC) and cryptocurrency exchanges today. The news, reported by Reuters on Nov. 6, was announced by Chief Executive Ashley Alder at a local fintech event. 

Regulatory clarity for crypto exchanges operating in Hong Kong

The new requirements will detail how exchanges much approach custody, compliance such as Know Your Customer and Anti-Money Laundering rules, among other issues.

“The framework will enable virtual asset trading platforms to be regulated by the SFC, a major development which builds on a way forward I outlined at the same time last year,” said Alder. 

As Cointelegraph reported, the SFC first established guidelines for crypto funds and exchanges in November 2018. Now, a year later, the regulator is taking that work forward, Alder told the conference on Wednesday.

Huobi could become first licensed exchange in HK

Commenting on the news, private investor Dovey Wan says that this is a big deal for the entire cryptocurrency industry. She points out that Huobi, in particular, may already be on its way to becoming the first licensed exchange in Hong Kong.

“WOW this is BIG,” wrote Wan. “Hongkong SEC will announce detail in about an hour regarding cryptocurrency exchange application criteria.” She added: 

“Considering Huobi has already backdoor listed on HKex, this will def play them a huge favor to be the first legalized Chinese crypto exchange.”

Earlier this year in March, the SFC also released regulatory guidelines for Security Token Offerings. The agency outlined that security tokens are “likely to be ‘securities’” under Hong Kong’s Securities and Futures Ordinance, and thus fall under existing securities laws.

Max Keiser: Bitcoin Going to $100K as Banks ‘Never Been in Worse Shape’

max keiser bitcoin

The one and only Max Keiser, once again spoke to Bitcoinist. He shares his thoughts on where he thinks Bitcoin price is now headed, the US-China trade war and the ‘unfolding’ global economic crisis. 


Max Keiser: I See Bitcoin Hitting $100K

Bitcoinist: Everyone’s talking about this US-China ‘trade war’ – what role do you see Bitcoin playing in all of this?   

Max Keiser: Keiser Report identified the twin trends of Deglobalization and Dedollarization a few years ago when Trump was running for President and now confirmed as President. The post-war period of global monetary cooperation (and Central Bank collusion*) are over.

The joint-race to the bottom with competitive fiat devaluations to boost exports – and now negative interest rates (covering more than $10 trillion and some mortgage bonds) – has reached its nadir.

Countries like China and Russia are pulling out of the $USD currency hegemony and easing into bi-lateral trade outside the dollar. And we’ll see more announcements like Russia and China’s recently about introducing a gold-backed crypto coin.

This means China and Russia are bringing back a Gold standard. This means curtains for the $USD. GREAT NEWS FOR BITCOIN AND GOLD. 

How will it affect its value and will these trade tensions accelerate another economic crisis?

The crisis unfolding now is less about trade and more about the next leg of the global bank crisis. $DB looks like the new Lehman. Contagion will be fierce and quick. 

You’ve been recently doubling down on your past prediction of $28K in the short-term for Bitcoin price. What makes you so confident that BTC will break its ATH so soon?   

To be clear, when Bitcoin was at $20,000, I said, $28,000 is in play. Traders scoffed at this when we had the pullback to $3,200, but $28,000 is still in play.

I see Bitcoin hitting $100,000, like I said back in 2011 when it was $1, and I don’t consider the recent 80% pullback (the fourth I’ve seen) significant. Everything is right on schedule. $28,000 is still in play. 

Specifically, what events could be a catalyst for this potential surge (e.g. EU elections, Brexit, central banks buying stocks etc.)

Bitcoin, as hinted in the Genesis Block, is an attack on Central Banks, and fiat money. As banks collapse, adoption, price, hashrate, difficulty, all go up. Banks have NEVER been in worse shape. Ipso facto, BTC continues on its monster rally. 

BTC price is up almost 50% since US Congressman Brad Sherman called for a blanket ban on Bitcoin. Is this a coincidence or is there something to this?   

Everyone I follow on Twitter thanked Brad Sherman profusely for telling the world how vulnerable the $USD is and how to escape that risk: Buy Bitcoin. 

What are your thoughts on Kik’s current battle with the SEC? What implications will this have on the crypto markets moving forward?

This was my tweet in that: Regarding Kik

Modern history of financial engineering: Wall St. “innovates” then lobbies law makers to change laws or write new laws, or face a financial crisis (made possible by their ‘Too Big To Fail’ status). Bitcoin will repeat this pattern as BTC whales muscle law makers to bend.

You previously stated that the Bitcoin protocol will become ‘self-aware’ at block 300,000. Could you elaborate?

I noticed around block 300,000 that the protocol was manipulating people’s behavior via the incredible incentives and game theory baked in. People are beyond addicted to Bitcoin. They are essentially giving their conscious and unconscious minds – along with hashing power – up for adoption by the protocol.

We are all becoming Satoshi’s children.

You can speculate on why and how – and I have, and maybe I’ll write more about this. Suffice to say, our species needs to start coming to terms with the presence of this self-aware parallel intelligence impacting our lives and our world. 

Why do you think your good friend, gold-bug Peter Schiff, refuses to acknowledge the benefits of Bitcoin despite his own business accepting BTC to buy gold?

I don’t think about Peter Schiff anymore. He’s become irrelevant. He’s got a cool house in Puerto Rico, though.

What do you think about Facebook’s announced GlobalCoin? Same as JPMCoin or will it help facilitate Bitcoin/crypto adoption?

It’s a payment rail. It will cut into established payment rails. It’s not Gold 2.0. It looks like, however, that $FB talked with the Winklevoss Twins and appear to have agreed to carve up the world; $FB takes payments, WT take Gold. 

Zuckerberg Consults Rivals Winklevoss to Push Facebook’s ‘GlobalCoin’

You hold quite a few patents yourself. What are your thoughts on Craig Wright’s attempts to patent certain aspects of Bitcoin?

Yes. My patents have a greater claim than anything Craig has ever come up with regarding Bitcoin. I suspect he’ll go insane and blow his brains out one day, as a few suffering from BDS (Bitcoin Derangement Syndrome) have already, in one way or another. 

What developments or upcoming events in Bitcoin are you most looking forward to this year?

CryptoSpings in Palm Springs will be the greatest. It’s all about Lightning! and watermelon margaritas. Also, Nomi Prins’ book “Collusion.”

Thanks again for yor thoughts Max!

What do you think of Max Keiser’s comments? Share your thoughts below!


Images via Shutterstock

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Bitcoin Speed Vs. Altcoins a ‘Red Herring,’ Says Charlie Shrem

red herring bitcoin

Bitcoin entrepreneur Charlie Shrem says that comparing Bitcoin to other altcoins and ‘faux cryptos’ in terms of speed is a ‘red herring’ argument. Instead, Bitcoin’s main selling points are decentralization and censorship resistance. 


Only Bitcoin is a ‘Censorship-Resistant Value Network’

Bitcoin pioneer, Charlie Shrem, says that comparing transaction speed between Bitcoin and other ‘faux’ cryptocurrencies is a non-starter.

“Transaction speeds” when debating bitcoin vs other faux-crypto’s is red herring argument,” said Shrem.

Why? Because the speed of payments was never a problem. Quick, online, digital payment services such as PayPal already existed when Bitcoin was created in late 2008.

“That’s not why we’re here,” says Shrem. “We’re building a censorship-resistant value network that can never be controlled by a single party.”

Indeed, most Bitcoin critics tend to focus on the relatively ‘high’ fees compared to other cryptocurrencies. But despite other cryptocurrencies appearing faster on paper, users overwhelmingly prefer to use the Bitcoin network when transferring value.

What’s more, centralized legacy banking transfers like with Bank of America sometimes levy higher fees than Bitcoin simply because they can.

But with Bitcoin, the transactions are trustless and the fees are set by the market (and unfortunately, also by some pretty bad fee estimators causing users to overpay).

It is the most secure, decentralized, value transfer network in the world. More importantly, anyone can use it as it’s the world first neutral form of digital money. This is why users trust the Bitcoin network and no one else, transferring over 3.2 trillion dollars in 2018.

‘No One Goes There, It’s Too Crowded’

Altcoins such as Litecoin or Bitcoin Cash resort to the ‘cheaper and faster because of potentially greater on-chain capacity’ narrative, nevertheless. But this is simply because it is the only advantage they can latch onto as a selling point.

But cheaper isn’t always better. The argument that ‘no one goes to that restaurant, it’s too crowded’ comes to mind. Transaction fees are only ‘cheap’ as the number of actual transactions is minuscule.

At the same time, these alternative networks are plagued by centralization. This means that they do not provide the same kind of censorship-resistance and decentralization as Bitcoin.

For example, Bitcoin Cash just experienced a successful 51 percent attack by miners where nearly $1.4 million dollars worth of BCH was double-spent after a centrally-planned hard-fork ‘upgrade’ was implemented.

“Based on our calculations, around 3,392 BCH may have been successfully double spent in an orchestrated transaction reversal,” notes BitMex Research. “However, the only victim with respect to these double spent coins could have been the original “thief”.”

“Bitcoin Cash’s May 2019 hard fork upgrade was plagued by three significant issues, two of which may have been indirectly caused by a bug which resulted in empty blocks,” adds BitMex Research.

In any case, this makes these alts unreliable for everyday transactions. So whether it’s for settling millions of dollars or buying coffee, users will still prefer to pay a higher fee in order to ensure that their money gets from point A to point B without trusting a third party.

Tone Vays Successfully Sends $10K for 1 Cent

In fact, the inability to alter the Bitcoin protocol is what gives it its biggest strength. Only the users are in control where the node operators watch each other to make sure nobody cheats, miners included.

This Byzantine fault-tolerant setup keeps the network trustless. Bitcoin continues to mine blocks roughly every 10 minutes as miners confirm transactions, highest fees first.

The ‘unreliable’ and ‘slow’ narrative was proven false by Tone Vays demonstrated at the Malta Blockchain Summit. Even a low-cost transaction cleared within a reasonable time despite high network activity.

Vays successfully sent $10,000 with a fee of 1 satoshi per byte or a fraction of a penny. BCH proponent Roger Ver lost $10,000 betting that it wouldn’t.

Do you agree with Charlie Shrem’s comments? Share your thoughts below!


Images via Bitinfocharts.com, Shutterstock

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Venezuela and Russia May Switch to Ruble After Trying ‘Petro’ Cryptocurrency

Petro venezuela crypto

Venezuela and Russia are in talks to switch over to the ruble for trade after trying the ‘El Petro’ cryptocurrency, a UN ambassador has revealed.  


Venezuela and Russia ‘Currently Trying’ El Petro

As Bitcoinist reported last December, Russian officials were introduced to El Petro but stopped short of confirming that it was going to be used.

“Representatives from our tax service and central bank… got acquainted with the cryptocurrency (Venezuela) is currently introducing,” deputy finance minister Sergey Storchak said. “But no more than that. As for payments, they’re not happening yet.”

venezuela

Now it appears that some transaction have at least been tried, according to a Venezuelan ambassador.

On Friday, May 17, Venezuelan UN ambassador, Jorge Valero, said:

We are currently trying to transact using other currencies including the cryptocurrency El Petro, which we created.

However, Valero didn’t share any further detail about El Petro, a purported ‘cryptocurrency’ that has been widely criticised for its lack of transparency and centralisation by the Venezuelan government.

Even members of the Russian Duma have voiced concerns about this ‘experimental’ digital token.

Digital economy committee member, Arseniy Poyakov, previously stated:

The national cryptocurrency of Venezuela was and still is a bold experiment. Generally speaking nothing changed much since. It wasn’t backed by anything except beautiful words then, and this hasn’t changed.

US Sanctions Forcing Countries to Crypto

In March, the US introduced new sanctions against a Russian bank for working with Venezuelan President Nicholas Maduro and the national oil company PDVSA. The US also alleged that the Russian bank attempted to bypass sanctions using ‘El Petro.’ 

Replying to a question on whether Venezuela will ask Russia for help, Valero said “we always have support from Russia and our relationship is multifacted.”

Russia

The ambassador also noted that that US sanctions against Venezuela have negatively impacted the country’s economy. In result, Caracas was forced to seek alternative ways to access global markets and oil investments as well as to service its national debt.

Venezuela Prefers Bitcoin Over Petro

But it’s not only Russia that’s not too impressed with the ‘Petro’ cryptocurrency. Though it has the marking of a ‘crypto’ with a block explorer and an official website, while offering the ability to pay for government services, the digital token is completely controlled by the state.

The block explorer also shows just 42 nodes supporting the network. The consensus algorithm used – whether it’s proof-of-work etc. — is also unclear.

Uptake, therefore, has been nonexistent despite attempts by Maduro to woo investors. As reported by Bitcoinist, Venezuelans have largely shrugged off the Petro. Instead, bitcoin adoption is rapidly spreading in the country. Bitcoin provides Venezuelans a way to transact globally bypassing sanctions and capital controls.

In fact, it is now a common occurrrence to see LocalBitcoins volumes climb each week.

Earlier this year, Bitcoinist reported on the US-backed opposition leader Juan Guaidó who proclaimed himself as the interim president of Venezuela. Interestingly, Guaidó is familiar with cryptocurrency technologies and has been promoting Bitcoin since at least 2014.

Will any country use the Petro to trade with Venezuela? Share your thoughts below!


Images via coin.dance, Shutterstock

The post Venezuela and Russia May Switch to Ruble After Trying ‘Petro’ Cryptocurrency appeared first on Bitcoinist.com.

Bitcoin Price Above $7.5K as BitMex Sets Record $10 Billion Volume [UPDATED]

Bitcoin price has gone parabolic. The past week saw its value go up nearly a whopping 40 percent. But is it now time for a blow-off top or full FOMO to the moon? Let’s take a look.


Bitcoin The World’s Best Performing Asset of 2019

Bitcoin price 00 has made the naysayers look foolish once again. BTC has soared a staggering 40 percent over the past week alone. Moreover, BTC/USD has more than doubled since the December-February lows.

Just yesterday, it broke the $7,000 mark on some impressive volume, the highest since volume since the April 1st rally. In fact, BitMex has announced it achieved record volume on May 11th, a Saturday nonetheless.

Bitcoin’s market cap has also added $30 billion in value since May began. By comparison, the market cap of every cryptocurrency excluding Bitcoin has only risen by $10 billion during the same time period. Hence, Bitcoin’s market dominance index is now the highest since its $20K all-time high price in late 2017.

Indeed, the voices of ardent no-coiners like Nouriel Roubini who danced on Bitcoin’s grave in November, have gone quiet.

Blow-Off or Lift-Off

The parabolic advance that we’re currently seeing was hinted at by veteran trader Peter Brandt in early April. (Brandt also correctly called the $20K top the previous year).

BTC price is already above the previous 6K levels from which it plunged to yearly lows last November.

This is a very encouraging sign. Particularly, when the Bitcoin market is now a lot more mature compared to a few years ago when fundamentals could not keep up with the runaway price.

Now, with the latest upswing, Brandt appears to be 50/50 on whether this rally continues to $10k and beyond or whether a blow-off top correction is imminent. The latter is when a steep and rapid rise in price and volume is followed by a similarly steep and rapid drop.

“Blow-off or lift-off,” he wrote.

Other commentators like ParabolicTrav have pointed out similarities, as well as notable differences, between now and the blow-off top in 2015,

Also, worth noting is that the current rally has completely wiped out the ‘Bitfinex premium.’ In fact, BTC is now trading almost $100 higher on Bitstamp.

The Public is Still On the Sidelines

Meanwhile, most of the general public is still unaware of the recent surge in bitcoin price. Google Trends data shows that interest in ‘Bitcoin’ is only now starting to pick up.

The previous  60% spike over the past 3 months was during the April 1st price rally to $5000.

 

But as Bitcoinist reported last month, people are mostly interested in Bitcoin or buying bitcoin only after a major price move.

This is exactly why fund manager’s like Tom Lee prefers to ‘hodl’ as it’s shown to be a much more lucrative strategy. In fact, it’s the best way to not miss out on the Bitcoin rocket as it historically generates most of its annual gains in just ten days.

Lee also shared a Twitter poll which provides some insight into the possible point of FOMO could be this time around.

Hitting the $10K mark would break a major psychological barrier as many people will realize that Bitcoin is actually not dead. What’s more, many will try to buy back in with the $20K price still fresh in their minds.

Out of over 4,000 participants:

  • 44% chose $10K,
  • 32% chose over $20K
  • 24% think the FOMO is already underway.

Will bitcoin price rally higher or is a blow-off imminent?  Share your thoughts below!


Images via Shutterstock, Twitter, Google Trends

The post Bitcoin Price Above $7.5K as BitMex Sets Record $10 Billion Volume [UPDATED] appeared first on Bitcoinist.com.

More Than Gold: 7 Reasons Why Bitcoin is Prime ‘Digital Real Estate’

Bitcoin itself is already ‘real estate’ on the blockchain by quickly emerging as the first ‘digital property’ for an increasingly digital world.


Bitcoin is ‘The Most Interesting Property’

Forget real estate on-the-blockchain.” Bitcoin already is. In fact, it’s the “most interesting property in the world,” writes General Partner at Blockchain Capital, Spencer Bogart.

Looking closer, many similarities do exist between Bitcoin and real estate. Moreover, Bitcoin introduces some unique advantages that will surely come in handy in an increasingly digital world. 

Bogarts explains that Bitcoin is a technology that “blurs the boundary” between personal property and real property because the distinction is arbitrary to begin with.

How Blockchain Technology is About to Disrupt the Mortgage Industry

It’s Absolutely Scarce

First and foremost, Bitcoin is scarce just like physical property. But it’s unitization into a total of 21 million pieces or bitcoins plot of land fungible. 

Fortunately, there’s no need to compare the pieces: Every piece of this property is the same as every other piece — they’re fungible,” explains Bogart. 

Additionally, Bitcoin’s scarcity is mathematically verifiable. In other words, Bitcoin’s scarcity is absolute. It’s even more absolute than physical territory that can be geologically formed over time, reclaimed, or colonized (in space) in the future etc.

What’s more, this scarcity will become even more palpable with time. Block reward halvings will continue reducing emission asymptotically until 2140. Meanwhile, over 75 percent of all bitcoin have already been mined. While over 4 million are now estimated to be lost.

You Don’t Need Guns or a Wall

Bitcoin introduces other unique attributes that weren’t possible before. Unlike physical real estate, it is both portable and borderless. It also doesn’t require walls or fences to secure. Safekeeping your bitcoins is much easier and cheaper.

A hardware wallet typically costs around $100 bucks on which you can store limitless amounts of value. And the best part is that no one has to know it. 

It’s discrete…nobody would even necessarily know if you were carrying it,” says Bogart. 

It Can Be Moved Around the Globe in Minutes

Digital real estate means your property is now portable in the age of computers. While fungibility makes it alot more liquid than traditional real estate. It’s no coincidence that so many exchanges have sprung up enabling people to trade bitcoin with anyone around the globe in minutes.

Bogart notes:

While it typically costs 8–20% in transaction expenses and months of time to finalize real property transactions, units of this particular property can be transacted for a fraction of 1% — and can be completed in minutes.

bitcoin globe world

It’s Programmable, Non-Discriminatory, Un-Seizable

This ‘digital real estate’ is also programmable empowering the owner to set who can access or use it and for how long. This brings a slew of benefits and new possibilities (e.g. multi-sig digital contracts) including being-your-own-bank capabilities. 

The ‘digital territory’ is also non-discriminatory by following one simple rule: the owner of the private key controls the property.

In other words, no one can take your digital plot of land from you unless you allow them to. This is nothing short of a breakthrough for objective property rights, undermining dependence on courts and governments.

Bogart notes:

It offers strong assurances for objective property rights, impersonal rules and consistent enforcement of these clearly defined rules.

It’s Quickly Developing and Growing in Value

The aforementioned traits make Bitcoin prime real estate for economic development. In a world that is becoming increasingly digital, the emergence of Bitcoin as ‘digital real estate’ may not only be necessary, but also inevitable.

Programmability, portability, security, fungibility, and network effect, in particular, are distinguishing Bitcoin as the focal point for trustlessly transferring value in the digital age.

bitcoin atm

And just like land along with its natural resources that can be developed to increase its value, Bitcoin is already demostrating tremendous economic growth and growing in price.

Bogart concludes: 

[T]his property is surrounded by economic growth in the form of rapidly expanding and improving infrastructure. Other people are building the bridges, tunnels, and railways that, hopefully, make your property more useful.

Should investors consider Bitcoin as ‘digital property’? Share your thoughts below!


Images via Shutterstock

The post More Than Gold: 7 Reasons Why Bitcoin is Prime ‘Digital Real Estate’ appeared first on Bitcoinist.com.

UK’s Biggest Business Travel Agency Now Accepts Bitcoin

UK’s biggest travel management company is now accepting bitcoin for payments after “increasing demand” from clients. The move also hints that its retail travel giant parent-company Flight Centre Group could soon accept BTC company-wide.


UK’s Biggest Travel Management Company Accepts Bitcoin

Corporate Traveller is the UK’s largest travel management company dedicated to partnering with companies with small – medium travel spend requirements.

Now it will be accepting Bitcoin (BTC) and Bitcoin Cash (BCH) payments for its services via third-party payment processor BitPay.

Corporate Traveller UK General Manager, Andy Hegley said:

We identified an increasing demand from our clients for the option to pay in Bitcoin for business travel bookings made by our travel consultants.

“We chose BitPay to manage our merchant processing because they make it easy and handle the entire process of getting the Bitcoin or Bitcoin Cash from the customer and depositing cash into our account,” said Hegley.

By using BitPay, Corporate Traveller won’t be subject to bitcoin price volatility. The tradeoff, however, is that it won’t benefit from Bitcoin network’s speed (10-30 minutes) since BitPay’s settlement into GBP will take about 2 business days.

Ultimately, though, accepting bitcoin is merely just another payment option for the company who still prefers to receive GBP in its bank account.

Hegley adds:

The blockchain industry is growing exponentially and we are excited to be able to offer our clients the ability to pay in bitcoin, whilst having the reassurance of our settlement from BitPay being in pounds sterling.

We believe Corporate Traveller is the first business travel management company to offer this payment option to SMEs in the UK.

Flight Centre Travel Group Next?

Corporate Traveller operates offices in 20 locations across the UK. At the same time, its parent company Flight Centre Travel Group (FCTG) is the largest retail travel service provider in Australia.

flight centre uk accept bitcoin

The Brisbane-based retail travel outlet is listed on the Australian Stock Exchange and has around 2,800 retail locations globally. Besides Australia and the UK, it has presence in New Zealand, United States, Canada, South Africa, Hong Kong, India, China, Singapore, United Arab Emirates, and Mexico.

Corporate Traveller, therefore, is testing the waters for possible company-wide adoption of bitcoin.

“All the time people ask if we accept Bitcoin… Mainly international students and tourists already here trying to book more flights,” an employee at an Australian fight centre travel agency explained.

Management knows about it, they’ll probably see how it goes at Corporate Traveller, before they let our customers pay with Bitcoin.

Travel Industry Pioneering Bitcoin Adoption

Paying with bitcoin for flights, hotels and travel services in general, has already been possible for years. One of the first companies to pioneer bitcoin acceptance since 2014 was CheapAir.

TravelbyBit to Integrate Binance’s BNB Coin Across all Merchants

Last year, CEO Jeff Klee told Bitcoinist that accepting bitcoin has been a “positive experience” for the company, despite issues with third-party payment processors.

Open-source (and self-hosted) solutions such as BTCPayServer can provide merchants with a more custom solution while retaining more control over the processing experience such as better fee estimation.

Kllee explained:

Every new payment method has its own challenges, but accepting Bitcoin has been quite a positive experience for CheapAir overall. Any technical challenges we’ve faced have been overcome, and have mostly been met with patience and an overall team mentality from the BTC community.

Other platforms such as Travelbybit, and even airlines such as Japan’s Peach and AirBaltic have been accepting bitcoin for quite some time now.

Klee also believes that “the longer crypto currencies are around, the more stable they seem and the more likely we’ll see additional buy-in from other travel retailers.”

Before long, crypto will just be another form of payment. It’s going to happen.

Will Flight Centre Travel Group accept bitcoin company-wide? Share your thoughts below!


Images via Shutterstock, Corporate Traveller

The post UK’s Biggest Business Travel Agency Now Accepts Bitcoin appeared first on Bitcoinist.com.

4 Reasons Why Delisting BSV Was the ‘Right Thing to Do’ for Binance

binance dex

Binance delisting Bitcoin SV (BSV) is forcing other exchanges like Kraken and Shapeshift to follow. Let’s take a look at the implications of this unprecedented move for the world’s biggest exchange. 


‘Satoshi’s Vision’ Should Have Seen It Coming

Yesterday, the biggest bitcoin exchange by volume, Binance, announced it would delist Bitcoin SV (BSV) in a stunning move. Citing the failure to meet high standards, CEO Changpeng ‘CZ’ Zhao pulled the plug on the altcoin claiming to be the ‘original’ Bitcoin.

CZ first issued a warning last week after BSV financiers Craig Wright and Calvin Ayre threatened to sue a member of the Bitcoin community for libel.

changpeng zhao cz binance

“Craig Wright is not Satoshi,” Zhao retaliated. “Anymore of this sh!t, we delist!”

Bit the sh!t kept flowing. Ayre and some other BSV supporters even urged the CEO to follow through with the threat calling Binance “a scammy bucket shop.”

Finally, Binance dropped the bomb on Monday, which CZ said was “the right thing” to do.

The news was largely received with praise by online commentators. Ayre, however, was indignant calling the move “unlawful.”

Kraken Will Likely Delist SV Next

As Bitcoinist reported, last week, Morgan Creek cofounder Anthony Pompliano called on every major exchange to delist BSV “simultaneously” on May 1st.

But with Binance pulling the trigger much earlier, other companies are already following suit.

Blockchain announced it would drop support by May 15th. “After careful consideration, we have determined to end all support of BSV within the Blockchain Wallet by May 15, 2019,” they wrote.

Shapeshift also jumped on the bandwagon delisting the altcoin much sooner.

“We stand with Binance and CZ’s sentiments,” wrote CEO Erik Voorhees.

We’ve decided to delist Bitcoin SV from Shapeshift within 48 hrs.

Bitcoin exchange Kraken, meanwhile, revealed it’s also considering taking action. It posted a public poll asking whether BSV should be removed.

With over 61 thousands respondents so far, the result suggest that Kraken will be the next major exchange to drop BSV. Overwhelmining, more than 70 percent said that Kraken should delist the altcoin saying, “Yes, it’s toxic.”

Interestingly, Kraken may have even more reason to remove BSV. As Bitcoinist reported last December the exchange was sued by UnitedCorp over an alleged complot to hijack the Bitcoin Cash network following a highly contested hard-fork that spawned BSV.

4 Reasons Why Binance Will Benefit

Ultimately, the decision to drop BSV could bring a slew of benefit for world’s biggest exchange for many reasons.

First, BSV trading volume on the platform was negligible. With Binance supporting hundreds of altcoins, dropping such a low volume coin will not hurt their business.

In fact, the number of actual BSV users is dwarfed even by its forked rival BCH. Its hashrate, despite courting miners, is a miniscule 1.6 percent of Bitcoin’s. Moreover, Bitcoin SV price 00 plunged immediately following the news by over 20 percent revealing its tenuous market presence.

Second, the delisting gained Binance a lot of ‘street cred’ from the community. By removing a coin that was synonymous with lawsuits, fraud and ‘Faketoshi,’ the exchange sets a precedent of industry self-regulation.

Third, it establishes Binance as the de facto leader among exchanges. By following through with his warning, the CEO demonstrated that he will defend his principles, like a true leader is expected to do.

Fourth, BSV is now a pariah. This means that other exchanges who *do not* delist it moving forward will lose credibility in the eyes of the public, further strenghtening Binance’s position.

It will also discourage exchanges from listing questionable Bitcoin-branded ‘forks’ in the future.

Case in point:

Will delisting BSV benefit Binance in the long run? Share your thoughts below!


Images via Shutterstock, twitter, coin.dance

The post 4 Reasons Why Delisting BSV Was the ‘Right Thing to Do’ for Binance appeared first on Bitcoinist.com.

Bitmex CEO: ‘You’ll Be Able to Use Bitcoin and Purchase the S&P 500’

s&p 500 stocks bitcoin

Bitmex CEO, Arthur Hayes, revealed that his platform wants to launch Bitcoin-backed short term bonds. He also wants to allow buying S&P 500 and Nasdaq QQQ indices with BTC, particularly by people in emerging markets.


‘You’ll Be Able to Use Bitcoin and Purchase the S&P 500’

Speaking in an interview with Luke Martin on his Venture Coinist podcast, BitMEX CEO Arthur Hayes revealed that he’s looking to launch bitcoin backed short term bonds and other BTC-backed financial products. Hayes said:

I want to create a future where the highest quality exchanges and miners… issue short-term Bitcoin bonds to the ecosystem.

“So, let’s say you want to buy some 30-day paper. Why can’t you buy a BitMEX 30-day zero-coupon bond that yields some rate of interest that reflects the market’s determination of our credit risk?” he added. 

The Bitmex CEO explained that in the next few months, his team will be working out the specificiations for this new type of bond.

What’s more, Hayes says that Bitmex has funded a new startup that will allow people to invest in S&P 500 and popular Nasdaq stocks using bitcoin without ‘Bitcoin-USD risk.” 

…Hopefully, by summer of this year, you’ll be able to use Bitcoin and purchase the S&P 500 and Nasdaq QQQ indices… and essentially, you won’t have Bitcoin-USD risk. You’ll send bitcoin. They’ll FX it into dollars, and allow you to buy a swap. And when you want to leave, you’ll sell the swap, get back dollars, and then you can get back your bitcoin.

According to Hayes, this bitcoin-backed product would open up “the most liquid and notable indices in the world” to emerging markets, in particular.

“So, this is hopefully going to allow people in emerging markets…to use their Bitcoin to access traditional equity indices,” he explained. 

Why Bitcoin is Key for Bitmex

Hayes also discussed why Bitcoin technology is so important to BitMEX and why it’s the main reason for his company’s success

gbtc wall street bitcoin

For one, Bitmex only takes bitcoin as collateral. This allows it to onboard a customer within 10 minutes, says Hayes. This is because Bitmex can process a deposit or withdrawal with no human intervention and without involvement of third-parties such as a bank. 

Bitcoin also allows Bitmex to be more financially flexible, such as being able to offer 100X perpetual swaps. The Hong-Kong based platform launched its ETH-USD perpetual swaps in August 2018.

Hayes says that in just two months, it became the most liquid ETH-USD trading instrument.

“From a speculator’s point of view, this is great,” he said. “I have Bitcoin and I want to speculate on Ether vs. USD price, and I want to get my money back in Bitcoin.”

Given the success of its perpetual swaps, Bitmex is now looking to launch it for other altcoins (vs. the USD) as well in the future, said Hayes.

The CEO also revealed that users can expect a bitcoin options platform that could launch “maybe in 12-18 months.”

Finally, Hayes stated that Bitmex has no plans to get on the  in-house token bandwagon like Binance (BNB) or Huobi as it would create more problems than it would solve.

It’s complicated in terms of what is the legality around that token: is it a security? […] We have more than enough issues to deal with […] than creating a whole set of issues because we issued our own token for money that we don’t need and new problems that we don’t need to have.

Will Bitmex’s Bitcoin-backed products open institutional grade trading to illiquid markets? Share your thoughts below!


Images via Shutterstock, Twitter

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Julian Assange Receives Nearly $30K in Bitcoin Donations Since Arrest

julian assange wikileaks bitcoin

The arrest of Julian Assange has caused an uproar around the world resulting in donations pouring in. The WikiLeaks defense fund has already received roughly $20,000 dollars in bitcoin donation in just 24 hours.


Julian Assange Sees Donations Flowing

Julian Assange, who had been living at the Ecuadorian embassy in London for seven years, was arrested Thursday morning after the country’s president rescinded the WikiLeaks founder’s asylum status. 

Assange’s eviction has caused an uproar across the globe. WikiLeaks editor-in-chief Kristinn Hrafnsson and Edward Snowden both said the arrest marks a “dark day” for press freedom.

Personalities who regularly supported Assange and WikiLeaks for exposing corruption by governments and top-level organizations rallied people to donate to the WikiLeaks defense fund.

It currently accepts Bitcoin, ZCash, as well as traditional payment methods including bank cards, and even cash or cheque.

As Bitcoinist reported yesterday, the wallet address for BTC donations jumped to a balance of 2.61 BTC ($13,200 USD) with around 20 transactions occurring moments after Assange’s arrest. Over the past 24 hours, nearly 140 more donations were received. 

The total at press time is approximately 7.94 BTC or over $31,000 dollars and counting. 

Bitcoin as ‘Free Speech Money’

Julian Assange had previously shown his support for Bitcoin despite some previous opposition from the industry itself. In Apil 2018 US cryptocurrency exchange Coinbase suspended WikiLeaks’ use of its services to much backlash.

In turn, WikiLeaks accused the San Francisco-based cryptocurrency exchange of ulterior political motives and obeying a “concealed influence.” It also called for a boycott of Coinbase, while continuing to accept Bitcoin donations directly. 

WikiLeaks initially began accepting bitcoin after many credit institutions, banks, and payment services like PayPal and Visa withdrew support in 2010.

Since then, several other companies such as social network Gab have followed WikiLeaks’ example. Dubbing it “free speech money,” the platform began accepting bitcoin as a way to transfer value without political interference.

Over $22 Million Donations in BTC and Counting

Bitcoin has indeed proven to be a boon for WikiLeaks and Julian Assange. Not only has it allowed to bypass censorship and political influence, but the donations have also skyrocketed in value as bitcoin price increased a staggering 103,000 percent over the past 7 years.

By 2017, the organization had received over 4,000 bitcoins that were worth over $22 million. In result, Assange ‘thanked’ his organization’s adversaries for introducing WikiLeaks to bitcoin, saying:

My deepest thanks to the US government, Senator McCain and Senator Lieberman for pushing Visa, MasterCard, Payal, AmEx, Mooneybookers, et al, into erecting an illegal banking blockade against WikiLeaks starting in 2010. It caused us to invest in Bitcoin — with > 50000% return.

At the end of the day, accepting Bitcoin really paid off for the non-profit. It also played a crucial role in keeping WikiLeaks alive and kicking throughout the past decade.

What do you think about Julian Assange’s arrest? Let us know in the comments below!


Images via Shutterstock, WikiLeaks

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Russia’s ‘Gold-Backed Crypto’ Would Lose to Bitcoin, Says Kremlin Economist

Russia to Issue First State-Backed Cryptocurrency 'CryptoRuble'

Russia and China buying up gold may be setting the stage for a gold-backed cryptocurrency, suggests a former EU minister. However, such a scheme would still be inferior to Bitcoin, according to Russian economist Vladislav Ginko. 


Russia Targets ‘Monetary Reset’

Russia was the biggest buyer of gold last year and has quadrupled its gold reserves over the past decade. In fact, the country has ramped up its buying spree in recent years, in particular, after US-led economic sanctions were imposed in 2014. 

Notably, Russia’s central bank added 651.5 metric tons in 2018 — 74 percent higher than in 2017, according to the World Gold Council. It is estimated that the country now holds approximately 34,000 tons of gold.

But Russia isn’t alone. China showing similar behavior buying 32.95 tons of gold in Q1 2019.

So why are the two neighboring superpowers so bent on boosting their gold reserves?

Bruno Maçães, former Europe minister of Portugal, says that while there’s no formal coordination, the two countries can expect mutual benefits in undermining the US dollar as a world reserve currency.

The sheer size of the purchases might reveal bolder motives, with Moscow preparing its first salvo in the coming battle for a monetary reset,” he adds.

Russian ‘GoldCoin’?

But Maçães also suggests that this potential ‘reset’ could also have ulterior motives. He writes:

These moves come at a moment when gold has become attractive as the anchor for new experiments in digital currencies. Gold and crypto are a marriage made in heaven, combining the stability of gold with the convenience and security of the blockchain.

These digital tokens would circulate on a global online platform and and would be “entirely backed by gold reserves held in an international trust insulating them from state interference.”

Interestingly, he notes that private financial institutions would be responsible for creating these ‘goldcoins’ and would therefore ultimately control the supply. At the same time, transactions would be peer-to-peer.

Money transactions would be processed directly between end users, with no intermediation from banks or governments.

There’s Just a Few Problems

However, the former EU minster displays only superficial knowledge of blockchain technology. For one, calling it a ‘blockchain’ doesn’t automatically make the network “convenient,” let alone “secure.”

Secondly, its node software must be distributed between peers all over the globe. It cannot be limited to a few datacenters operated by a handful of private insitutions. Such a scheme re-introduces central points of failure making it a cryptocurrency in name only.

In other words, one can’t just flip a switch to activate a secure and trustless blockchain. It takes years if not decades for the network effect to make it viable and valuable (think: internet).

Thirdly, regardless of relative price stability, gold’s physical properties still entail costs of transfer, storage, and trust.

The latter, in particular, would be a big problem for Russia. To wit, gold isn’t a risk-free asset when it comes to geopolitics. Venezuela, for example, learned this lesson the hard way earlier this year.

“[G]old is a US based asset and the experience of Venezuela has shown that in case of severe financial US sanctions Russia might also face the sell of gold would be impossible since such a deal would require USD nominated transactions,” Kremlin economist, Vladislav Ginko, told Bitcoinist.

‘Gold is Highly Risky’ Unlike Bitcoin

Bitcoin, on the other hand, has been battle-tested for over a decade. It’s blockchain is secured by a staggering amount of increasing computing power, making it the de facto ‘metric system’ of cryptocurrencies today.

Moreover, despite price volatility and being ‘unbacked’ — one bitcoin will always equal one bitcoin. But more importantly, there’s no central authority that can change the rules. This makes it the world’s most politically-nuetral form of money ever and an ideal foundation to build not only applications but a new global economy.

Ginko, who previously stated that Russian have bought over $6.8 billion in bitcoin for these reasons, agrees.

“Bitcoin goes well so Russia doesn’t consider issuing gold backed stablecoin since gold is USD based asset. And its valuation and opportunities to sell this asset might be very limited in case of new US sanctions,” he said.

Gold is highly risky, unstable asset for Russia.

So then why is Russia buying so much gold if the precious metal is still largely controlled by the US?

Ginko says the reason has more to do with its domestic gold mining industry. He explained:

The gold accrual by Russia’s central bank looks significant only in physical terms. But in relative terms this is a minor fraction of total reserves (less 19%). The main reason of Russian gold buying is to support the gold market. In 2018… Russia exported only 5,4% (3,4 times less than in 2017 year) of its gold produced so the huge amount of this domestic metal output was bought out by the central bank.

Will Russia and China attempt to create a gold-backed stablecoin? Share your thoughts below!


Images via Shutterstock, Statista

The post Russia’s ‘Gold-Backed Crypto’ Would Lose to Bitcoin, Says Kremlin Economist appeared first on Bitcoinist.com.

Next Bitcoin Market Peak Will Be ‘Significantly Higher,’ Says Researcher

Coinbase To Seek Biggest Ever $1bn Investment Round

Now is likely an excellent time to build exposure to Bitcoin as 99.5 percent of the potential market is still untapped, says market researcher Victor Dergunov.


‘This is Very Likely Only The Beginning’

Market researcher at SeekingAlpha, Victor Dergunov, believes now is the time to get into Bitcoin — before it’s too late.

After a 15-month long bear market, bitcoin is starting to show signs of bottoming. For one, the BTC/USD price today is trading over 40 percent higher compared to its mid-December yearly lows.

Therefore, Dergunov says now could be “an excellent time to build your exposure to bitcoin.” Particularly, after what he calls a “formidable rally” and technical similarities to previous bull-run setups. Therefore, he believes that:

…This is very likely only the beginning of Bitcoin’s next bull market.

However, as Bitcoin grows more popular, “the bull market peak is always significantly higher than the previous one,” according to Dergunov.

Bitcoin: 99.5% of the Potential Market Still Untapped

Finite supply, along with strengthening fundamentals such as rising daily transactions and hash rate (network security), is also what’s making the analyst bullish on BTC — particularly as a long-term investment.

The market capitalization of Bitcoin and other virtual currencies is also still a drop in the ocean compared to traditional markets. This gives Bitcoin huge upside potential especially since it’s unlike any other asset. Dergunov notes:

Currently, only about 0.56% of potential users have exposure to Bitcoin, which implies nearly 99.5% of the potential market is still untapped.

“Bitcoin’s market cap is only $90 billion, and the entire cryptocurrency complex is valued at just $180 billion, while the world’s fiat money supply is worth around $90.4 trillion,” he adds.

Federal Reserve: 2018 Bitcoin Price Drop Tied to Launch of Futures Market

Bitcoin’s Unique Value Proposition

Bitcoin and other digital assets, he says, are also attractive because they’re outside the existing financial system.

…Bitcoin and other digital assets act as alternative currencies and payment systems relative to the current fiat financial status quo.

As Bitcoinist reported, chief investment officer at Ikigai Asset Management, Travis Kling, also believes more people are becoming open to the idea of Bitcoin being hedge against traditional market uncertainties.

In fact, what makes Kling “so bullish” on cryptocurrencies is the monetary easing “experiment” of central banks around the globe. He said:

…Look at whats happening with monetary/fiscal policies. And US policy isnt nearly as rekt as EU, Japan & China Close your eyes & imagine the next 5-10 years. Do you really think these policy ‘experiments’ are going to end well?

Thus, the world’s only neutral and borderless protocol for storing and transferring value does offer a unique value proposition — especially with traditional money becoming increasingly digital and, thus, much easier to control by central authorities.

Could the recent BTC price rally be the beginning of the next bull market? Share your thoughts below! 


Images via Shutterstock, twitter/@victordergunov.

The post Next Bitcoin Market Peak Will Be ‘Significantly Higher,’ Says Researcher appeared first on Bitcoinist.com.

Chinese Bitcoin Investors Are Happily Paying a Markup For Tethers

China Leads World in Blockchain Patent Applications

As Bitcoin price surged over 27 percent in the past week, traders in China are paying a markup for Tether stablecoins, which offer an easy way to buy cryptocurrencies. 


Tether Offers China The Easiest Way to Buy Bitcoin

Cryptocurrency traders in China are starting to wake up. The latest data shows strong demand for stablecoin USD Tether, whose price 00 has risen above its nominal $1 peg indicating increasing buyer demand.

China-focused cryptocurrency Twitter news service cnLedger explains that investors are happily paying a 3 percent markup on over-the-counter platforms for tethers.

Chinese markets reveal strong buys. OTC (Over-The-Counter) trades, the almost only way to buy bitcoin with fiat in China, showing considerable $ premium (1 USDT = 7 CNY) over the official rate of 1 USD = 6.7 CNY.

“…After the PBoC ICO/exchange ban, the most convenient way to buy cryptos in China, is to buy stable coins like USDT first using OTC, and then trade it into any cryptos you want in exchanges” adds cnLedger

Chinese Yuan Again Flowing Into Bitcoin

The latest data from Coinmarketcap shows trading volume involving USDT comprising around $18 billion. The stable coin currently stands at a market capitalization of roughly $2.11 billion.

This is up from its yearly low of $1.6 billion seen in mid-November when USDT dropped under its nominal peg to 98 cents. Notably, this was also when Bitcoin’s $6,000 support finally gave, plunging BTC/USD to $3,000 price levels.

Bitcoinist reported in March on the resurgence of Chinese Yuan (CNY) inflows into Bitcoin and cryptocurrencies in general. The likey reason for this resurgence is record profits from red-hot Chinese stocks.

Data from Coinlib shows $127 million and $72.4 million in CNY money flows over the past 24 hours into bitcoin and ethereum, respectively.

This may not be a coincidence as bitcoin price 00 surged over 27 percent over the past week breaking some key resistance levels along the way. The latest upswing is also seeing increasing bullish sentiment that could be signalling a reversal after a 15-month long bear market.

China Should Create Its Own Cryptocurrency 'As Soon as Possible'

Chinese Shrug Off Bitcoin Trading Ban

Chinese traders and investors appear to be shrugging off the current ban on ICOs and virtual currency trading. Appetite for bitcoin in China appears to be on the rise once more as off-exchange and OTC platforms are becoming more popular.

The rising bitcoin price, meanwhile, seems to be activating a positive feedback loop that’s boosting interest in the world’s leading cryptocurrency.

Bitcoin exchanges frequented by Chinese traders such as Huobi and OkEx have been seeing increasing traffic, according to the latest data from Alexa Rankings.

Additionally, a December 2018 survey of nearly 5000 Chinese people revealed that two in five (or 40 percent) wanted to invest in bitcoin, particularly among the millenial demographic.

Futhermore, searches on China’s ‘Google’ Baidu for Bitcoin have soared over the past week to the number one spot on April 4th as BTC price hit its 2019 high.

The rising interest also comes after a Chinese court issued a ruling in October 2018 saying there is no prohibition on owning and transferring bitcoin in China. The decision means that Bitcoin and other cryptocurrencies are legally regarded as property in the country that’s particularly known for its Bitcoin mining industry.

Could China spark another bitcoin price bull-run? Share your thoughts below!


Images via Shutterstock, Twitter/@cnLedger

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Don’t Buy Bitcoin! – Warns the Media as BTC Price Rises (Again)

Don't buy bitcoin newspaper

It’s still too early to declare that bitcoin price is headed for another parabolic bull-run. But one might want to take the repeating “Don’t buy bitcoin” message from the mainstream press with a grain of salt. 


Kids, Don’t Buy Bitcoin

As bitcoin price 00 appears to be attempting to shake off the bear market, headlines from the media are starting to resemble those in late 2017. Yes, right before BTC price soared to its record heights of nearly $20,000 USD.

“Don’t buy bitcoin, warns wealth manager” reads an April 4th headline from CNBC. 

The problem, though, is that it’s almost verbatim from November 13, 2017, when CNBC said that “As bitcoin soars and ICOs spread, advisors urge caution.” The price, of course, doubled a month later.

In fact, 2017 was particularly fruitful when it came to telling the public that: Bitcoin Bad!

German central bank’s board member Carl-Ludwig Thiele, for example, warned against investing in the cryptocurrency in May 2017. Pretty much every bank in the world has cautioned against Bitcoin at some point or other. And most of these indeed received their spotlight in the papers.

Had you read the Economic Times in October 2017, for example, when bitcoin was roughly $4,000, you would have learned the “7 Reasons not to invest in bitcoin, cryptocurrencies.” Of course, the 500 percent gain in price thereafter would have eluded you.

But maybe you would have given up and panic bought at $19,000. Well, that would have been your fault then. It was a bubble after all. Didn’t you read the papers?

DYOR

The truth is that the mainstream press doesn’t care if you make or lose money. Neither does anyone else for that matter. It’s all about clicks and ad revenue.

And what’s better than alternating between fear and greed to get clicks? Why not both? Even better!

Bet on the price of bitcoin with cash on this regulated platform whose parent company advertises in the same newspaper that says it’s better to just bet on bitcoin price.

Forbes explained the “6 reasons why Bitcoin futures are better than bitcoin” in December 2017. Three days later though, they also told you to “completely ignore” the 1,400 percent bitcoin price rally.

*Sigh*

The point here is simply this: it’s all noise.

You will learn very little about Bitcoin itself reading the mainstream newspapers. Most headlines are algorithm-based and might as well be written by robots.

But merely pointing to the bitcoin price (because it’s trending) to evoke fear and/or greed and say “Look!” works. And that’s why the press keeps doing it.

Distinguishing the signal from the noise, however, is much harder than simply glancing over some headlines and feeling like you learned something.

It’s only possible if one does their research (DYOR). It requires time. But it’s the only way to ensure you’re making more educated decisions than reading clickbait. More importantly, the decisions will be yours. It also beats FOMO’ing into the latest virtual coin or living in ignorance and then with regret.

Bitcoin Isn’t Money. This Piece of Paper Is.

Unfortunately, the fear, uncertainty, and doubt (FUD) have been rehashed, repeated and reverberated for the past decade since Bitcoin first launched. In the press, Bitcoin was a bubble in 2011. It was a bubble in 2017. And it’s still a bubble now.

But if it’s always about to pop, if it’s just fad, and ‘not money’ – why devote so much time and effort to discredit it?

Interestingly, some of the most notable publications are directly named after (fiat) billionaires. It may also be no coincidence that academia, Bill Gates, Warren Buffet — entities who greatly benefit from the status quo and have a tremendous influence on public opinion — are also very anti-Bitcoin.

bitcoin Berkshire Hathaway Warren Buffett

Amusingly, most people who held bitcoin before 2017 have outperformed the ‘Oracle of Omaha’ even after the crash.

Bitcoin has even beaten stocks like Amazon (AMZN) in the past seven years. But you won’t know this reading the Washington Post, which is owned by the same guy by the way.

Is it really a surprise that legacy financial institutions, Wall Street, banks, etc. are throwing so much shade at Bitcoin?

Probably not. Which is why it might be worth learning what Bitcoin is, why it was created and what could happen if the $243 trillion USD worth of global debt is foreshadowing another financial crisis.

It may then become clear why the CME chairman, for example, is so anti-bitcoin. Maybe you’ll even end up getting some…you know, just in case the bubble re-inflates.

Do you trust the mainstream media’s reporting on Bitcoin? Share your opinions below!


Images via Shutterstock

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Why Bitcoin May Be The Greenest Technology Ever

bitcoin green tech leaf

The benefit for the planet may be incalculable by switching to a sound money like Bitcoin from inflationary ‘cheap’ money that incentivizes waste, incessant growth, and profligate consumption. 


New Technology Requires New Thinking

Today, most commentators attempt to define Bitcoin using analogies. They compare it to things they’re familiar with like stocks, commodities, or a payment service like PayPal. 

Just like the automobile was first described as a horseless carriage, Bitcoin today is presented largely as digital pseudo-money that’s not backed by any government.

Similarly, Bitcoin mining has been heavily criticized in the mainstream media. Headlines like Bitcoin uses more energy than *insert country* are not uncommon; and are regularly rehashed and republished.

Such findings, however, have been debunked time and time again. (Here’s a great article explaining Bitcoin’s energy use.) Meanwhile, similar concerns related to the banking system are deliberately ignored.

But Bitcoin is not like the inflationary fiat money that drives the global economy today. It possesses the properties of sound money. Unlike the dollar, it is deflationary, non double-spendable and un-counterfeitable. This makes it a completely different animal and requires some new thinking to understand its potential.

Inflation Incentivizes Profligate Consumption

Dollar hegemony, Keynesian thinking and inflation have now shaped economic policy for generations. Permanent Quantitative Easing (QE) and even negative interest rates are becoming the new normal. So it’s not surprising that something like Bitcoin is incomprehensible to most people today. 

Inflationary monetary policies force businesses into high time preference thinking. This means chasing quick quarterly profits, borrowing ‘cheap’ money, and doing whatever it takes to grow at all costs.

Today, most corporations hide behind a veneer of environmentalism to sell more products. Earth tone tote bags, less-plasticky plastic bottles, green logos, recycled materials etc. Anything to boost profit margins and ease over-consumption worries in the minds of the buyers. In result, if the product is ‘eco-friendly’ consumers feel less guilty about buying that new smartphone every year.

Cheap Money Doesn’t Care About the Future

The inflationary money phenomenon results in what is known as the Cantillon effect, where those closest to the money printers set the tone of economic activity.

Big businesses benefit, in particular, as they get special access to the central bank’s discount window. This ‘cheap money’ incentivizes borrowing and high time preference choices that tend to prioritize quantity over quality.

This also has a big impact on the time preferences of the population too. High inflation, or the reduction of purchasing power of money, means individuals will also have a high time preference.

This is especially evident in hyper-inflationary economies. People will rush to spend their money as soon possible knowing that it’ll be worthless the next day.

Starving Venezuelans Turn to Bitcoin Mining in Desperation

Bitcoin investor, Jimmy Song, explains the difference between a low time preference versus a high time preference individual. He says:

A low time preference person is willing to forego things now for something better later.

A bunch of high time preference people will not think very much about the future. Instead of saving for tomorrow, they’ll spend now, consume and not be very productive. They won’t be saving for tomorrow, starting businesses or building large scale projects as they all require a lot of planning.

Sound Money is Green Tech

So perhaps we should not be focusing on whether Bitcoin ‘wastes’ more or less electricity than today’s financial system. Instead, we should be asking whether sound money would change how we value our time, labor and our environment, particularly for future generations. 

“[Unrealized capital gains tax] and fiat money have a similar outcome. Distortion of time preference from investing in the future towards present consumption. Encouraging hedonistic activity and thus more environmental destruction, says Bitcoin Center NY co-founder, Austin E. Alexander.

In other words, Bitcoin could curb the high time preference, growth-focused economic policies of today that incentivize profligate consumption, environmental harm and yes…lots of wasted energy.

This is why the consequences of a Bitcoin standard may be “incalculable,” says economist and author of The Bitcoin Standard, Saifedean Ammous. He explains:

The benefits incurred from [switching from the horse to the automobile] are incalculable for us, primarily by not having to deal with horse manure as a permanent fixture of life. In a very similar way, the benefits of bitcoin lie in the horrors it would allow us to avoid by taking money production out of the hands of the state’s violent Keynesian barbarians.

Bitcoin, on the other hand, provides a nuetral, sound money alternative. Its digital scarcity as a result of its 21 million cap and counterfeit-proof nature, makes it deflationary.

Switching to a Bitcoin standard would certainly help lower individuals’ time preferences and yes, may ultimately be very, very good for the environment.

Do you agree that a sound money like Bitcoin may be good for the planet? Share your thoughts below!


Images via Shutterstock

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4 Reasons Why You Should Probably Get Some Bitcoin, Just in Case

bitcoin

Over a decade after Bitcoin was launched, the world’s first non-trust based money is breaking out of yet another bear market cycle. Let’s look at a few reasons why it may be a good idea to buy even a small fraction of a bitcoin before the FOMO (fear of missing out) kicks in.


Bitcoin is Pretty Unique

Ten years ago, anonymous Bitcoin creator Satoshi Nakamoto explained why it was unlike other digital currencies that came before it.

What made Bitcoin truly revolutionary is that it didn’t rely on trust. Additionally, its decentralized software made it impervious to attacks — especially if the network grew large enough.

bitcoin price

The mysterious creator predicted that if people start to value Bitcoin’s digital scarcity, usefulness, and trustlessness, then the price would ultimately shoot through the roof.

“You know, I think there were a lot more people interested in the ’90s,  but after more than a decade of failed Trusted Third Party based systems (Digicash, etc), they see it as a lost cause,” explained Nakamoto in an email a week after Bitcoin was launched.

I hope they can make the distinction that this is the first time I know of that we’re trying a non-trust-based system. Yea, that was the primary feature that caught my eye. The real trick will be to get people to actually value the BitCoins so that they become currency.

Today, Bitcoin touts an unprecedented 99.98 percent uptime. Meanwhile, it keeps mining a new block about every ten minutes without relying on trusted third-party systems.

In fact, the least predictable thing about bitcoin today is the price. With a supply set in stone at 21 million, price volatility is not suprising since the creation of new bitcoin is predictable and doesn’t follow supply and demand.

This non double-spendable, digital unit of value is unlike any other ‘asset’ that has ever existed.

Bitcoin Survived and Caught On

Today, it is stronger than ever with exponential gains in computing power (security) and usage.

In fact, the most unlikely thing was obtaining a value greater than zero. It’s biggest milestone was arguably hitting one cent and then parity with the dollar within two years. This was the most vulnerable period for Bitcoin where it could have actually ‘died.’

Today, millions of people around the world are speculating on the price of bitcoin as it has shot up from zero to as high as $20,000 USD in recent years.

At the same time, it is being used for all kinds of economic activity averaging over 350,000 transactions daily. Thousands of merchants and some big name companies accept BTC today as financial institutions are also starting to dip their toes.

“I would be surprised if 10 years from now we’re not using electronic currency in some way, now that we know a way to do it that won’t inevitably get dumbed down when the trusted third party gets cold feet,” Nakamoto continues. 

Applications are also being built on top of the Bitcoin network such as the Lightning Network. Bringing instant and near-zero fee payments, it’s already seeing uptake and some innovative use-cases online.

“Once it gets bootstrapped, there are so many applications if you could effortlessly pay a few cents to a website as easily as dropping coins in a vending machine,” Nakamoto adds. 

Lightning Spin, is just one example of the applications Satoshi predicted. Simpy scan an invoice with a smartphone to instantly send a fraction of a cent. The wheel will spin to provide an experience that certainly does feel like “dropping coins” into the computer screen.

Digital Scarcity. Limitless Potential.

Bitcoin is digitally scarce unlike the dollar and other fiat currencies. Its supply is limited to 21 million, of which 17.6 million have already been mined.

Therefore, its price could grow by orders of magnitude considering that only a few million, out of nearly 8 billion people, hold bitcoin today. In other words, it’s still early, and the market cap could grow into the trillions if Bitcoin continues to steer the course.

The ‘permanent QE‘ by the Federal Reserve should only accelerate the demise of the dollar against bitcoin.

Bitcoin’s Schelling Point

With each day, Bitcoin’s network effect and Schelling Point also become more pronounced and apparent. This can already be witnessed as altcoins are at the mercy of BTC price moves. It’s a clear sign that Bitcoin is becoming the de facto ‘metric system’ for cryptocurrencies.

With time, it will become natural for people to use Bitcoin. This includes everyday transactions, storing wealth, and more —  just like email and messaging apps are now second nature today.

Trusting banks, governments and other third-parties to store your (depreciating fiat) money and private information will seem archaic. The lightbulb will go off once people realize that Bitcoin is an open, voluntary money-like protocol that doesn’t require trusting banks to not put profits over customers.

Thus, it is no surprise why the legacy financial system is so anti-Bitcoin.

Satoshi Nakamoto notes:

It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.

Fortunately, Bitcoin has already cleared its most vulnerable period and miraculously “caught on.” In fact, we may already be past the tipping point. Therefore, it may be a good idea to buy even a fraction of a bitcoin, just in case.

Is buying even a fraction of a bitcoin a good idea for the long-term?  Share your thoughts below! 


Images via Shutterstock

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